Exhibit 99.2

 

 

 

 

img165194719_0.jpg 

 

Supplemental Financial Information

First Quarter 2023

 

 

 

 

 

 

 

 

 

 

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, 2022.

 

2 of 18

 

 

 

Preface

PRIMERICA, INC.

Financial Supplement

 

 

First Quarter 2023

 

This document is a financial supplement to our first quarter 2023 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, 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 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 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 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. 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 it is caused by market movements in interest rates that are not permanent and may not align with the cash flow we will ultimately incur when policy benefits are settled.

• 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.

 

Effective January 1, 2023, we adopted FASB ASU 2018-12 "Targeted Improvements to the Accounting for Long-Duration Contracts" (or "LDTI"). The impact of LDTI on our financial statements is significant, as it requires us to make changes to the way we calculate future policy benefit reserves on our term life insurance product and discontinued product lines issued by our New York subsidiary. LDTI also requires changes to the way we amortize deferred acquisition costs for these products as well as Canadian Segregated funds. We have restated our 12/31/2021 balance sheet and 2022 financial statements in this document as it was necessary to present historical periods on a comparable basis with future period results

Also effective January 1, 2023, we no longer allocate a portion of net investment income to the Term Life Insurance segment, and all net investment income will be recorded in the Corporate & Other Distributed Products segment. As such, we have retrospectively restated for comparison purposes the 2022 income statements in this document for the Term Life Insurance and Corporate and Other Distributed Product Segments.

 

In this document, we have also included estimated term life issued policy counts by quarter for 2022 adjusting issued policies to a single life per policy basis to facilitate comparisons going forward.

 

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,
2021

 

Mar 31,
2022

 

Jun 30,
2022

 

Sep 30,
2022

 

Dec 31,
2022

 

Mar 31,
2023

 

Jun 30,
2023

Sep 30,
2023

Dec 31,
2023

Condensed Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments and cash excluding securities held to maturity

$

3,277,830

 

$

3,191,154

 

$

3,048,974

 

$

2,981,598

 

$

3,141,919

 

$

3,246,388

 

 

 

 

 

Securities held to maturity

 

1,379,100

 

 

1,390,310

 

 

1,415,940

 

 

1,433,760

 

 

1,444,920

 

 

1,460,000

 

 

 

 

 

 

 

Total investments and cash

 

4,656,930

 

 

4,581,464

 

 

4,464,914

 

 

4,415,358

 

 

4,586,839

 

 

4,706,388

 

 

 

 

 

Due from reinsurers

 

4,218,704

 

 

3,692,660

 

 

3,359,054

 

 

3,160,111

 

 

3,176,397

 

 

3,179,074

 

 

 

 

 

Deferred policy acquisition costs

 

2,959,654

 

 

3,033,186

 

 

3,088,172

 

 

3,133,408

 

 

3,194,029

 

 

3,256,845

 

 

 

 

 

Goodwill

 

179,154

 

 

179,154

 

 

187,707

 

 

127,707

 

 

127,707

 

 

127,707

 

 

 

 

 

Other assets

 

1,367,435

 

 

1,253,840

 

 

1,217,898

 

 

1,206,368

 

 

1,227,459

 

 

1,195,710

 

 

 

 

 

Separate account assets

 

2,799,992

 

 

2,696,891

 

 

2,358,987

 

 

2,206,608

 

 

2,305,717

 

 

2,329,968

 

 

 

 

 

 

 

Total assets

$

16,181,869

 

$

15,437,194

 

$

14,676,732

 

$

14,249,560

 

$

14,618,147

 

$

14,795,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Future policy benefits

$

8,594,476

 

$

7,332,290

 

$

6,606,150

 

$

6,094,187

 

$

6,297,911

 

$

6,561,624

 

 

 

 

 

Other policy liabilities

 

1,103,642

 

 

1,108,047

 

 

999,789

 

 

1,005,195

 

 

1,037,440

 

 

996,747

 

 

 

 

 

Income taxes

 

15,311

 

 

95,302

 

 

167,560

 

 

217,364

 

 

202,462

 

 

199,394

 

 

 

 

 

Other liabilities

 

669,631

 

 

683,865

 

 

646,660

 

 

659,582

 

 

626,773

 

 

659,734

 

 

 

 

 

Debt obligations

 

607,102

 

 

598,303

 

 

592,504

 

 

592,705

 

 

592,905

 

 

593,106

 

 

 

 

 

Surplus note

 

1,378,585

 

 

1,389,811

 

 

1,415,457

 

 

1,433,293

 

 

1,444,469

 

 

1,459,565

 

 

 

 

 

Payable under securities lending

 

94,529

 

 

93,171

 

 

96,603

 

 

80,754

 

 

100,938

 

 

74,452

 

 

 

 

 

Separate account liabilities

 

2,799,992

 

 

2,696,891

 

 

2,358,987

 

 

2,206,608

 

 

2,305,717

 

 

2,329,968

 

 

 

 

 

 

 

Total liabilities

 

15,263,269

 

 

13,997,680

 

 

12,883,710

 

 

12,289,687

 

 

12,608,615

 

 

12,874,590

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interest

$

7,271

 

$

4,616

 

$

2,233

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock ($0.01 par value) (1)

 

394

 

 

388

 

 

378

 

 

370

 

 

368

 

 

364

 

 

 

 

 

Paid-in capital

 

5,224

 

 

(0

)

 

(0

)

 

(0

)

 

(0

)

 

—

 

 

 

 

 

Retained earnings

 

2,074,111

 

 

2,083,693

 

 

2,068,690

 

 

2,033,368

 

 

2,130,935

 

 

2,151,771

 

 

 

 

 

Treasury stock

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

Accumulated other comprehensive income (loss), net:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net unrealized gains (losses)

 

63,775

 

 

(66,439

)

 

(175,746

)

 

(252,913

)

 

(240,869

)

 

(208,157

)

 

 

 

 

 

Effect of change in discount rate assumptions on the liability for future policy benefits

 

(1,240,727

)

 

(594,586

)

 

(104,894

)

 

195,563

 

 

131,295

 

 

(11,679

)

 

 

 

 

 

Cumulative translation adjustment

 

8,553

 

 

11,842

 

 

2,362

 

 

(16,514

)

 

(12,196

)

 

(11,198

)

 

 

 

 

 

 

Total stockholders’ equity (2)

 

911,330

 

 

1,434,897

 

 

1,790,789

 

 

1,959,874

 

 

2,009,532

 

 

1,921,102

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

$

16,181,869

 

$

15,437,194

 

$

14,676,732

 

$

14,249,560

 

$

14,618,147

 

$

14,795,692

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Total Stockholders' Equity to Adjusted Stockholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

$

911,330

 

$

1,434,897

 

$

1,790,789

 

$

1,959,874

 

$

2,009,532

 

$

1,921,102

 

 

 

 

 

Less: Net unrealized gains (losses)

 

63,775

 

 

(66,439

)

 

(175,746

)

 

(252,913

)

 

(240,869

)

 

(208,157

)

 

 

 

 

Less: Effect of change in discount rate assumptions on the liability for future policy benefits

 

(1,240,727

)

 

(594,586

)

 

(104,894

)

 

195,563

 

 

131,295

 

 

(11,679

)

 

 

 

 

 

 

Adjusted stockholders’ equity

$

2,088,281

 

$

2,095,922

 

$

2,071,430

 

$

2,017,224

 

$

2,119,107

 

$

2,140,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted Stockholders' Equity Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

$

2,088,281

 

$

2,095,922

 

$

2,071,430

 

$

2,017,224

 

$

2,119,107

 

 

 

 

 

Net Income attributable to Primerica, Inc.

 

 

 

115,039

 

 

125,168

 

 

76,777

 

 

143,956

 

 

125,106

 

 

 

 

 

Shareholder dividends

 

 

 

(21,645

)

 

(21,178

)

 

(20,571

)

 

(20,389

)

 

(23,910

)

 

 

 

 

Retirement of shares and warrants

 

 

 

(103,862

)

 

(127,963

)

 

(97,515

)

 

(32,098

)

 

(96,323

)

 

 

 

 

Net foreign currency translation adjustment

 

 

 

3,289

 

 

(9,480

)

 

(18,876

)

 

4,318

 

 

998

 

 

 

 

 

Other, net

 

 

 

14,820

 

 

8,961

 

 

5,979

 

 

6,096

 

 

15,960

 

 

 

 

Balance, end of period

 

 

$

2,095,922

 

$

2,071,430

 

$

2,017,224

 

$

2,119,107

 

$

2,140,938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred Policy Acquisition Costs Rollforward

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

$

2,959,654

 

$

3,033,186

 

$

3,088,172

 

$

3,133,408

 

$

3,194,029

 

 

 

 

 

General expenses deferred

 

 

 

9,519

 

 

9,321

 

 

9,726

 

 

9,283

 

 

10,777

 

 

 

 

 

Commission costs deferred

 

 

 

123,739

 

 

119,794

 

 

119,734

 

 

113,479

 

 

118,386

 

 

 

 

 

Amortization of deferred policy acquisition costs

 

 

 

(63,223

)

 

(64,200

)

 

(65,447

)

 

(66,236

)

 

(67,358

)

 

 

 

 

Foreign currency impact and other, net

 

 

 

3,496

 

 

(9,930

)

 

(18,777

)

 

4,095

 

 

1,011

 

 

 

 

Balance, end of period

 

 

$

3,033,186

 

$

3,088,172

 

$

3,133,408

 

$

3,194,029

 

$

3,256,845

 

 

 

 

 

(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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except per-share data)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Earnings per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares and fully vested equity awards

 

39,221,003

 

 

38,385,520

 

 

37,438,254

 

 

36,973,967

 

 

36,709,525

 

 

 

 

 

(2,511,478

)

 

-6.4

%

 

39,221,003

 

 

36,709,525

 

 

(2,511,478

)

 

-6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primerica, Inc.

$

115,039

 

$

125,168

 

$

76,777

 

$

143,956

 

$

125,106

 

 

 

 

$

10,067

 

 

8.8

%

$

115,039

 

$

125,106

 

$

10,067

 

 

8.8

%

 

Less income attributable to unvested participating securities

 

(477

)

 

(554

)

 

(362

)

 

(690

)

 

(565

)

 

 

 

 

(89

)

 

-18.6

%

 

(477

)

 

(565

)

 

(89

)

 

-18.6

%

 

 

Net income used in computing basic EPS

$

114,562

 

$

124,614

 

$

76,415

 

$

143,267

 

$

124,541

 

 

 

 

$

9,978

 

 

8.7

%

$

114,562

 

$

124,541

 

$

9,978

 

 

8.7

%

 

 

Basic earnings per share

$

2.92

 

$

3.25

 

$

2.04

 

$

3.87

 

$

3.39

 

 

 

 

$

0.47

 

 

16.1

%

$

2.92

 

$

3.39

 

$

0.47

 

 

16.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

116,954

 

$

127,922

 

$

138,897

 

$

142,040

 

$

128,891

 

 

 

 

$

11,937

 

 

10.2

%

$

116,954

 

$

128,891

 

$

11,937

 

 

10.2

%

 

Less operating income attributable to unvested participating securities

 

(484

)

 

(566

)

 

(655

)

 

(681

)

 

(564

)

 

 

 

 

(80

)

 

-16.4

%

 

(484

)

 

(564

)

 

(80

)

 

-16.4

%

 

 

Adjusted net operating income used in computing basic operating EPS

$

116,469

 

$

127,356

 

$

138,243

 

$

141,359

 

$

128,327

 

 

 

 

$

11,857

 

 

10.2

%

$

116,469

 

$

128,327

 

$

11,857

 

 

10.2

%

 

 

Basic adjusted operating income per share

$

2.97

 

$

3.32

 

$

3.69

 

$

3.82

 

$

3.50

 

 

 

 

$

0.53

 

 

17.7

%

$

2.97

 

$

3.50

 

$

0.53

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares and fully vested equity awards

 

39,221,003

 

 

38,385,520

 

 

37,438,254

 

 

36,973,967

 

 

36,709,525

 

 

 

 

 

(2,511,478

)

 

-6.4

%

 

39,221,003

 

 

36,709,525

 

 

(2,511,478

)

 

-6.4

%

 

Dilutive impact of contingently issuable shares

 

110,941

 

 

115,058

 

 

102,810

 

 

107,245

 

 

94,123

 

 

 

 

 

(16,818

)

 

-15.2

%

 

110,941

 

 

94,123

 

 

(16,818

)

 

-15.2

%

 

 

Shares used to calculate diluted EPS

 

39,331,944

 

 

38,500,578

 

 

37,541,064

 

 

37,081,212

 

 

36,803,648

 

 

 

 

 

(2,528,296

)

 

-6.4

%

 

39,331,944

 

 

36,803,648

 

 

(2,528,296

)

 

-6.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Primerica, Inc.

$

115,039

 

$

125,168

 

$

76,777

 

$

143,956

 

$

125,106

 

 

 

 

$

10,067

 

 

8.8

%

$

115,039

 

$

125,106

 

$

10,067

 

 

8.8

%

 

Less income attributable to unvested participating securities

 

(475

)

 

(552

)

 

(361

)

 

(688

)

 

(582

)

 

 

 

 

(107

)

 

-22.5

%

 

(475

)

 

(582

)

 

(107

)

 

-22.5

%

 

 

Net income used in computing diluted EPS

$

114,564

 

$

124,615

 

$

76,415

 

$

143,268

 

$

124,524

 

 

 

 

$

9,960

 

 

8.7

%

$

114,564

 

$

124,524

 

$

9,960

 

 

8.7

%

 

 

Diluted earnings per share

$

2.91

 

$

3.24

 

$

2.04

 

$

3.86

 

$

3.38

 

 

 

 

$

0.47

 

 

16.2

%

$

2.91

 

$

3.38

 

$

0.47

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income

$

116,954

 

$

127,922

 

$

138,897

 

$

142,040

 

$

128,891

 

 

 

 

$

11,937

 

 

10.2

%

$

116,954

 

$

128,891

 

$

11,937

 

 

10.2

%

 

Less operating income attributable to unvested participating securities

 

(483

)

 

(564

)

 

(653

)

 

(679

)

 

(581

)

 

 

 

 

(98

)

 

-20.2

%

 

(483

)

 

(581

)

 

(98

)

 

-20.2

%

 

 

Adjusted net operating income used in computing diluted operating EPS

$

116,471

 

$

127,357

 

$

138,244

 

$

141,361

 

$

128,310

 

 

 

 

$

11,839

 

 

10.2

%

$

116,471

 

$

128,310

 

$

11,839

 

 

10.2

%

 

 

Diluted adjusted operating income per share

$

2.96

 

$

3.31

 

$

3.68

 

$

3.81

 

$

3.49

 

 

 

 

$

0.53

 

 

17.7

%

$

2.96

 

$

3.49

 

$

0.53

 

 

17.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

 

 

 

 

YOY YTD

 

 

 

 

 

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

 

 

 

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Annualized Return on Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average stockholders' equity (1)

$

1,173,114

 

$

1,612,843

 

$

1,875,331

 

$

1,984,703

 

$

1,965,317

 

 

 

 

$

792,203

 

 

67.5

%

$

1,173,114

 

$

1,965,317

 

$

792,203

 

 

67.5

%

 

Average adjusted stockholders' equity (1)

$

2,092,102

 

$

2,083,676

 

$

2,044,327

 

$

2,068,165

 

$

2,130,022

 

 

 

 

$

37,920

 

 

1.8

%

$

2,092,102

 

$

2,130,022

 

$

37,920

 

 

1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

39.2

%

 

31.0

%

 

16.4

%

 

29.0

%

 

25.5

%

 

 

 

 

-13.8

%

nm

 

 

39.2

%

 

25.5

%

 

-13.8

%

nm

 

 

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

 

22.0

%

 

24.0

%

 

15.0

%

 

27.8

%

 

23.5

%

 

 

 

 

1.5

%

nm

 

 

22.0

%

 

23.5

%

 

1.5

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net operating income return on adjusted stockholders' equity

 

22.4

%

 

24.6

%

 

27.2

%

 

27.5

%

 

24.2

%

 

 

 

 

1.8

%

nm

 

 

22.4

%

 

24.2

%

 

1.8

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Structure

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt-to-capital (2)

 

29.4

%

 

24.9

%

 

23.2

%

 

22.8

%

 

23.6

%

 

 

 

 

-5.8

%

nm

 

 

29.4

%

 

23.6

%

 

-5.8

%

nm

 

 

Debt-to-capital, excluding AOCI (2)

 

22.3

%

 

22.3

%

 

22.6

%

 

21.8

%

 

21.6

%

 

 

 

 

-0.7

%

nm

 

 

22.3

%

 

21.6

%

 

-0.7

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and invested assets to stockholders' equity

 

3.2

x

 

2.5

x

 

2.3

x

 

2.3

x

 

2.4

x

 

 

 

 

(0.7

x)

nm

 

 

3.2

x

 

2.4

x

 

(0.7

x)

nm

 

 

Cash and invested assets to adjusted stockholders' equity

 

2.2

x

 

2.2

x

 

2.2

x

 

2.2

x

 

2.2

x

 

 

 

 

0.0

x

nm

 

 

2.2

x

 

2.2

x

 

0.0

x

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share count, end of period (3)

 

38,751,885

 

 

37,768,052

 

 

37,026,600

 

 

36,824,428

 

 

36,407,876

 

 

 

 

 

(2,344,009

)

 

-6.0

%

 

38,751,885

 

 

36,407,876

 

 

(2,344,009

)

 

-6.0

%

 

Adjusted stockholders' equity per share

$

54.09

 

$

54.85

 

$

54.48

 

$

57.55

 

$

58.80

 

 

 

 

$

4.72

 

 

8.7

%

$

54.09

 

$

58.80

 

$

4.72

 

 

8.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Strength Ratings - Primerica Life Insurance Co

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

A1

 

A1

 

A1

 

A1

 

A1

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

S&P

AA-

 

AA-

 

AA-

 

AA-

 

AA-

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

A.M. Best

A+

 

A+

 

A+

 

A+

 

A+

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Holding Company Senior Debt Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moody's

Baa1

 

Baa1

 

Baa1

 

Baa1

 

Baa1

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

S&P

A-

 

A-

 

A-

 

A-

 

A-

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

A.M. Best

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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Statement of Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

798,666

 

$

808,894

 

$

810,079

 

$

812,481

 

$

817,872

 

 

 

 

$

19,206

 

 

2.4

%

$

798,666

 

$

817,872

 

$

19,206

 

 

2.4

%

 

Ceded premiums

 

(399,885

)

 

(419,048

)

 

(404,870

)

 

(406,088

)

 

(405,347

)

 

 

 

 

(5,462

)

 

-1.4

%

 

(399,885

)

 

(405,347

)

 

(5,462

)

 

-1.4

%

 

 

Net premiums

 

398,781

 

 

389,846

 

 

405,209

 

 

406,393

 

 

412,525

 

 

 

 

 

13,745

 

 

3.4

%

 

398,781

 

 

412,525

 

 

13,745

 

 

3.4

%

 

Net investment income

 

18,905

 

 

21,284

 

 

24,346

 

 

28,530

 

 

31,065

 

 

 

 

 

12,160

 

 

64.3

%

 

18,905

 

 

31,065

 

 

12,160

 

 

64.3

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

103,242

 

 

88,701

 

 

67,962

 

 

66,473

 

 

72,388

 

 

 

 

 

(30,853

)

 

-29.9

%

 

103,242

 

 

72,388

 

 

(30,853

)

 

-29.9

%

 

 

Asset-based (2)

 

113,112

 

 

108,101

 

 

107,483

 

 

105,357

 

 

111,904

 

 

 

 

 

(1,208

)

 

-1.1

%

 

113,112

 

 

111,904

 

 

(1,208

)

 

-1.1

%

 

 

Account-based (3)

 

21,541

 

 

22,592

 

 

22,910

 

 

23,348

 

 

22,790

 

 

 

 

 

1,249

 

 

5.8

%

 

21,541

 

 

22,790

 

 

1,249

 

 

5.8

%

 

 

Other commissions and fees

 

13,905

 

 

21,294

 

 

27,113

 

 

31,542

 

 

24,464

 

 

 

 

 

10,559

 

 

75.9

%

 

13,905

 

 

24,464

 

 

10,559

 

 

75.9

%

 

Investment (losses) gains

 

751

 

 

(1,892

)

 

(2,699

)

 

2,846

 

 

(4,608

)

 

 

 

 

(5,359

)

nm

 

 

751

 

 

(4,608

)

 

(5,359

)

nm

 

 

Other, net

 

20,988

 

 

18,755

 

 

20,964

 

 

22,451

 

 

19,508

 

 

 

 

 

(1,481

)

 

-7.1

%

 

20,988

 

 

19,508

 

 

(1,481

)

 

-7.1

%

 

                  Total revenues

 

691,225

 

 

668,681

 

 

673,288

 

 

686,940

 

 

690,036

 

 

 

 

 

(1,189

)

 

-0.2

%

 

691,225

 

 

690,036

 

 

(1,189

)

 

-0.2

%

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

168,288

 

 

153,071

 

 

164,092

 

 

165,742

 

 

168,702

 

 

 

 

 

414

 

 

0.2

%

 

168,288

 

 

168,702

 

 

414

 

 

0.2

%

 

Future policy benefits remeasurement (gain)/loss

 

(1,272

)

 

(627

)

 

988

 

 

433

 

 

(508

)

 

 

 

 

765

 

 

60.1

%

 

(1,272

)

 

(508

)

 

765

 

 

60.1

%

 

Amortization of DAC

 

63,223

 

 

64,200

 

 

65,447

 

 

66,236

 

 

67,358

 

 

 

 

 

4,136

 

 

6.5

%

 

63,223

 

 

67,358

 

 

4,136

 

 

6.5

%

 

Insurance commissions

 

7,721

 

 

7,594

 

 

7,666

 

 

7,280

 

 

8,138

 

 

 

 

 

417

 

 

5.4

%

 

7,721

 

 

8,138

 

 

417

 

 

5.4

%

 

Insurance expenses

 

59,509

 

 

59,461

 

 

57,552

 

 

58,883

 

 

61,125

 

 

 

 

 

1,616

 

 

2.7

%

 

59,509

 

 

61,125

 

 

1,616

 

 

2.7

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based (1)

 

74,606

 

 

63,403

 

 

48,775

 

 

47,927

 

 

52,452

 

 

 

 

 

(22,154

)

 

-29.7

%

 

74,606

 

 

52,452

 

 

(22,154

)

 

-29.7

%

 

 

Asset-based (2)

 

53,366

 

 

50,876

 

 

51,549

 

 

51,047

 

 

54,276

 

 

 

 

 

910

 

 

1.7

%

 

53,366

 

 

54,276

 

 

910

 

 

1.7

%

 

 

Other sales commissions

 

5,952

 

 

5,484

 

 

5,592

 

 

4,187

 

 

4,147

 

 

 

 

 

(1,805

)

 

-30.3

%

 

5,952

 

 

4,147

 

 

(1,805

)

 

-30.3

%

 

Interest expense

 

6,853

 

 

6,814

 

 

6,802

 

 

6,768

 

 

6,690

 

 

 

 

 

(163

)

 

-2.4

%

 

6,853

 

 

6,690

 

 

(163

)

 

-2.4

%

 

Contract acquistion costs (4)

 

20,649

 

 

19,384

 

 

13,446

 

 

14,952

 

 

14,984

 

 

 

 

 

(5,665

)

 

-27.4

%

 

20,649

 

 

14,984

 

 

(5,665

)

 

-27.4

%

 

Other operating expenses

 

86,434

 

 

79,728

 

 

73,790

 

 

80,443

 

 

89,534

 

 

 

 

 

3,100

 

 

3.6

%

 

86,434

 

 

89,534

 

 

3,100

 

 

3.6

%

 

Goodwill impairment

 

—

 

 

—

 

 

60,000

 

 

—

 

 

—

 

 

 

 

 

—

 

#DIV/0!

 

 

—

 

 

—

 

 

—

 

#DIV/0!

 

 

Loss on extinguishment of debt

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

 

—

 

#DIV/0!

 

 

—

 

 

—

 

 

—

 

#DIV/0!

 

 

                  Total benefits and expenses

 

545,329

 

 

509,389

 

 

555,697

 

 

503,898

 

 

526,899

 

 

 

 

 

(18,430

)

 

-3.4

%

 

545,329

 

 

526,899

 

 

(18,430

)

 

-3.4

%

 

 Income before income taxes

 

145,896

 

 

159,292

 

 

117,591

 

 

183,041

 

 

163,137

 

 

 

 

 

17,241

 

 

11.8

%

 

145,896

 

 

163,137

 

 

17,241

 

 

11.8

%

 

 

Income taxes

 

33,511

 

 

36,509

 

 

40,815

 

 

39,085

 

 

38,031

 

 

 

 

 

4,520

 

 

13.5

%

 

33,511

 

 

38,031

 

 

4,520

 

 

13.5

%

 

Net income

 

112,385

 

 

122,784

 

 

76,777

 

 

143,956

 

 

125,106

 

 

 

 

 

12,721

 

 

11.3

%

 

112,385

 

 

125,106

 

 

12,721

 

 

11.3

%

 

Net income attributable to noncontrolling interests

 

(2,654

)

 

(2,384

)

 

—

 

 

—

 

 

—

 

 

 

 

 

2,654

 

 

100.0

%

 

(2,654

)

 

—

 

 

2,654

 

 

100.0

%

 

 

Net Income attributable to Primerica, Inc.

$

115,039

 

$

125,168

 

$

76,777

 

$

143,956

 

$

125,106

 

 

 

 

$

10,067

 

 

8.8

%

$

115,039

 

$

125,106

 

$

10,067

 

 

8.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes by Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life

$

118,575

 

$

125,034

 

$

128,168

 

$

128,470

 

$

126,735

 

 

 

 

$

8,160

 

 

6.9

%

$

118,575

 

$

126,735

 

$

8,160

 

 

6.9

%

Investment & Savings Products

 

67,038

 

 

63,017

 

 

59,222

 

 

56,612

 

 

56,107

 

 

 

 

 

(10,931

)

 

-16.3

%

 

67,038

 

 

56,107

 

 

(10,931

)

 

-16.3

%

Senior Health

 

(23,085

)

 

(16,150

)

 

(63,723

)

 

4,285

 

 

(3,762

)

 

 

 

 

19,324

 

 

83.7

%

 

(23,085

)

 

(3,762

)

 

19,324

 

 

83.7

%

Corporate & Other Distributed Products

 

(16,632

)

 

(12,609

)

 

(6,075

)

 

(6,325

)

 

(15,944

)

 

 

 

 

688

 

 

4.1

%

 

(16,632

)

 

(15,944

)

 

688

 

 

4.1

%

 

Income before income taxes

$

145,896

 

$

159,292

 

$

117,591

 

$

183,041

 

$

163,137

 

 

 

 

$

17,242

 

 

11.8

%

$

145,896

 

$

163,137

 

$

17,242

 

 

11.8

%

 

(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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life direct premiums

$

793,254

 

$

803,453

 

$

804,586

 

$

807,796

 

$

812,880

 

 

 

 

$

19,626

 

 

2.5

%

$

793,254

 

$

812,880

 

$

19,626

 

 

2.5

%

 

Less: Premiums ceded to IPO Coinsurers

 

234,614

 

 

231,805

 

 

226,869

 

 

224,240

 

 

220,240

 

 

 

 

 

(14,374

)

 

-6.1

%

 

234,614

 

 

220,240

 

 

(14,374

)

 

-6.1

%

 

Term Life adjusted direct premiums

$

558,640

 

$

571,648

 

$

577,717

 

$

583,556

 

$

592,640

 

 

 

 

$

34,000

 

 

6.1

%

$

558,640

 

$

592,640

 

$

34,000

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term Life ceded premiums

$

(398,446

)

$

(417,406

)

$

(403,416

)

$

(404,174

)

$

(404,044

)

 

 

 

$

(5,597

)

 

-1.4

%

$

(398,446

)

$

(404,044

)

$

(5,597

)

 

-1.4

%

 

Less: Premiums ceded to IPO Coinsurers

 

(234,614

)

 

(231,805

)

 

(226,869

)

 

(224,240

)

 

(220,240

)

 

 

 

 

14,374

 

 

6.1

%

 

(234,614

)

 

(220,240

)

 

14,374

 

 

6.1

%

 

Term Life other ceded premiums

$

(163,832

)

$

(185,601

)

$

(176,548

)

$

(179,935

)

$

(183,804

)

 

 

 

$

(19,971

)

 

-12.2

%

$

(163,832

)

$

(183,804

)

$

(19,971

)

 

-12.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Investment Income to Adjusted Net Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Investment Income

$

18,905

 

$

21,284

 

$

24,346

 

$

28,530

 

$

31,065

 

 

 

 

$

12,160

 

 

64.3

%

$

18,905

 

$

31,065

 

$

12,160

 

 

64.3

%

 

Less: MTM investment adjustments

 

(2,099

)

 

(1,254

)

 

(68

)

 

(409

)

 

(327

)

 

 

 

nm

 

nm

 

 

(2,099

)

 

(327

)

nm

 

nm

 

 

Adjusted net investment income

$

21,004

 

$

22,538

 

$

24,414

 

$

28,940

 

$

31,392

 

 

 

 

$

10,388

 

 

49.5

%

$

21,004

 

$

31,392

 

$

10,388

 

 

49.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Other Operating Expenses to Adjusted other operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating expenses

$

86,434

 

$

79,728

 

$

73,790

 

$

80,443

 

$

89,534

 

 

 

 

$

3,100

 

 

3.6

%

$

86,434

 

$

89,534

 

$

3,100

 

 

3.6

%

 

Less: eTeleQuote transaction-related costs

 

900

 

 

(2,892

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

900

 

 

—

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquisition

 

256

 

 

3,328

 

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

256

 

 

—

 

nm

 

nm

 

 

Adjusted other operating expenses

$

85,278

 

$

79,292

 

$

73,790

 

$

80,443

 

$

89,534

 

 

 

 

$

4,256

 

 

5.0

%

$

85,278

 

$

89,534

 

$

4,256

 

 

5.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Total Revenues to Adjusted Operating Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

$

691,225

 

$

668,681

 

$

673,288

 

$

686,940

 

$

690,036

 

 

 

 

$

(1,189

)

 

-0.2

%

$

691,225

 

$

690,036

 

$

(1,189

)

 

-0.2

%

 

Less: Investment gains/(losses)

 

751

 

 

(1,892

)

 

(2,699

)

 

2,846

 

 

(4,608

)

 

 

 

nm

 

nm

 

 

751

 

 

(4,608

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(2,099

)

 

(1,254

)

 

(68

)

 

(409

)

 

(327

)

 

 

 

nm

 

nm

 

 

(2,099

)

 

(327

)

nm

 

nm

 

 

Adjusted operating revenues

$

692,573

 

$

671,827

 

$

676,056

 

$

684,503

 

$

694,972

 

 

 

 

$

2,398

 

 

0.3

%

$

692,573

 

$

694,972

 

$

2,398

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

145,896

 

$

159,292

 

$

117,591

 

$

183,041

 

$

163,137

 

 

 

 

$

17,241

 

 

11.8

%

$

145,896

 

$

163,137

 

$

17,241

 

 

11.8

%

 

Less: Investment gains/(losses)

 

751

 

 

(1,892

)

 

(2,699

)

 

2,846

 

 

(4,608

)

 

 

 

nm

 

nm

 

 

751

 

 

(4,608

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(2,099

)

 

(1,254

)

 

(68

)

 

(409

)

 

(327

)

 

 

 

nm

 

nm

 

 

(2,099

)

 

(327

)

nm

 

nm

 

 

Less: eTeleQuote transaction-related costs

 

(900

)

 

2,892

 

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

(900

)

 

—

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquisition

 

(256

)

 

(3,328

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

(256

)

 

—

 

nm

 

nm

 

 

Less: Noncontrolling interest before income taxes

 

(3,668

)

 

(3,129

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

(3,668

)

 

—

 

nm

 

nm

 

 

Less: Goodwill impairment

 

—

 

 

—

 

 

(60,000

)

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

—

 

 

—

 

nm

 

nm

 

 

Adjusted operating income before income taxes

$

152,068

 

$

166,003

 

$

180,359

 

$

180,605

 

$

168,073

 

 

 

 

$

16,005

 

 

10.5

%

$

152,068

 

$

168,073

 

$

16,005

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation from Net Income to Adjusted Net Operating Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

112,385

 

$

122,784

 

$

76,777

 

$

143,956

 

$

125,106

 

 

 

 

$

12,721

 

 

11.3

%

$

112,385

 

$

125,106

 

$

12,721

 

 

11.3

%

 

Less: Investment gains/(losses)

 

751

 

 

(1,892

)

 

(2,699

)

 

2,846

 

 

(4,608

)

 

 

 

nm

 

nm

 

 

751

 

 

(4,608

)

nm

 

nm

 

 

Less: MTM investment adjustments

 

(2,099

)

 

(1,254

)

 

(68

)

 

(409

)

 

(327

)

 

 

 

nm

 

nm

 

 

(2,099

)

 

(327

)

nm

 

nm

 

 

Less: e-TeleQuote transaction-related costs

 

(900

)

 

2,892

 

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

(900

)

 

—

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquisition

 

(256

)

 

(3,328

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

(256

)

 

—

 

nm

 

nm

 

 

Less: Noncontrolling interest before income taxes

 

(3,668

)

 

(3,129

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

(3,668

)

 

—

 

nm

 

nm

 

 

Less: Goodwill impairment

 

—

 

 

—

 

 

(60,000

)

 

—

 

 

—

 

 

 

 

nm

 

nm

 

 

—

 

 

—

 

nm

 

nm

 

 

Less: Tax impact of reconciling items

 

1,603

 

 

1,573

 

 

647

 

 

(520

)

 

1,151

 

 

 

 

nm

 

nm

 

 

1,603

 

 

1,151

 

nm

 

nm

 

 

Adjusted net operating income

$

116,954

 

$

127,922

 

$

138,897

 

$

142,040

 

$

128,891

 

 

 

 

$

11,937

 

 

10.2

%

$

116,954

 

$

128,891

 

$

11,937

 

 

10.2

%

 

7 of 18

 

 

 

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

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(23,085

)

$

(16,150

)

$

(63,723

)

$

4,285

 

$

(3,762

)

 

 

 

$

19,324

 

 

83.7

%

$

(23,085

)

$

(3,762

)

$

19,324

 

 

83.7

%

 

Less: e-TeleQuote transaction-related costs

 

(399

)

 

(66

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Less: Noncontrolling interest

 

(3,668

)

 

(3,129

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Less: Goodwill impairment

 

—

 

 

—

 

 

(60,000

)

 

—

 

 

—

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Adjusted operating income before income taxes

$

(19,018

)

$

(12,955

)

$

(3,723

)

$

4,285

 

$

(3,762

)

 

 

 

$

15,256

 

 

80.2

%

$

(19,018

)

$

(3,762

)

$

15,256

 

 

80.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

$

(16,632

)

$

(12,609

)

$

(6,075

)

$

(6,325

)

$

(15,944

)

 

 

 

$

688

 

 

4.1

%

$

(16,632

)

$

(15,944

)

$

688

 

 

4.1

%

 

Less: Investment gains/(losses)

 

751

 

 

(1,892

)

 

(2,699

)

 

2,846

 

 

(4,608

)

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Less: MTM investment adjustments

 

(2,099

)

 

(1,254

)

 

(68

)

 

(409

)

 

(327

)

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Less: e-TeleQuote transaction-related costs

 

(501

)

 

2,958

 

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Less: Equity comp for awards exchanged during acquistion

 

(256

)

 

(3,328

)

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Less: Loss on extinguishment of debt

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

 

 

nm

 

nm

 

nm

 

nm

 

nm

 

nm

 

 

Adjusted operating income before income taxes

$

(14,527

)

$

(9,094

)

$

(3,307

)

$

(8,762

)

$

(11,008

)

 

 

 

$

3,519

 

 

24.2

%

$

(14,527

)

$

(11,008

)

$

3,519

 

 

24.2

%

 

8 of 18

 

 

 

Term Life Insurance - Financial Results and Analysis

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Term Life Insurance Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct Premiums

$

793,254

 

$

803,453

 

$

804,586

 

$

807,796

 

$

812,880

 

 

 

 

$

19,626

 

 

2.5

%

$

793,254

 

$

812,880

 

$

19,626

 

 

2.5

%

 

Premiums ceded to IPO coinsurers (1)

 

(234,614

)

 

(231,805

)

 

(226,869

)

 

(224,240

)

 

(220,240

)

 

 

 

 

14,374

 

 

6.1

%

 

(234,614

)

 

(220,240

)

 

14,374

 

 

6.1

%

 

Adjusted direct premiums (2)

 

558,640

 

 

571,648

 

 

577,717

 

 

583,556

 

 

592,640

 

 

 

 

 

34,000

 

 

6.1

%

 

558,640

 

 

592,640

 

 

34,000

 

 

6.1

%

 

Other ceded premiums (3)

 

(163,832

)

 

(185,601

)

 

(176,548

)

 

(179,935

)

 

(183,804

)

 

 

 

 

(19,971

)

 

-12.2

%

 

(163,832

)

 

(183,804

)

 

(19,971

)

 

-12.2

%

 

Net premiums

 

394,808

 

 

386,047

 

 

401,169

 

 

403,621

 

 

408,836

 

 

 

 

 

14,028

 

 

3.6

%

 

394,808

 

 

408,836

 

 

14,028

 

 

3.6

%

 

Other, net

 

12,175

 

 

12,374

 

 

13,419

 

 

12,352

 

 

12,233

 

 

 

 

 

58

 

 

0.5

%

 

12,175

 

 

12,233

 

 

58

 

 

0.5

%

 

Revenues

 

406,983

 

 

398,421

 

 

414,588

 

 

415,974

 

 

421,069

 

 

 

 

 

14,086

 

 

3.5

%

 

406,983

 

 

421,069

 

 

14,086

 

 

3.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

166,407

 

 

149,328

 

 

161,283

 

 

161,769

 

 

164,375

 

 

 

 

 

(2,032

)

 

-1.2

%

 

166,407

 

 

164,375

 

 

(2,032

)

 

-1.2

%

 

Future policy benefits remeasurement (gain)/loss

 

(1,434

)

 

(663

)

 

1,072

 

 

(526

)

 

(31

)

 

 

 

 

1,403

 

 

97.9

%

 

(1,434

)

 

(31

)

 

1,403

 

 

97.9

%

 

Amortization of DAC

 

61,369

 

 

62,538

 

 

63,631

 

 

64,813

 

 

65,503

 

 

 

 

 

4,134

 

 

6.7

%

 

61,369

 

 

65,503

 

 

4,134

 

 

6.7

%

 

Insurance commissions

 

3,793

 

 

3,854

 

 

3,964

 

 

3,724

 

 

4,590

 

 

 

 

 

797

 

 

21.0

%

 

3,793

 

 

4,590

 

 

797

 

 

21.0

%

 

Insurance expenses

 

58,272

 

 

58,329

 

 

56,471

 

 

57,723

 

 

59,896

 

 

 

 

 

1,624

 

 

2.8

%

 

58,272

 

 

59,896

 

 

1,624

 

 

2.8

%

 

Benefits and expenses

 

288,408

 

 

273,387

 

 

286,421

 

 

287,504

 

 

294,334

 

 

 

 

 

5,926

 

 

2.1

%

 

288,408

 

 

294,334

 

 

5,926

 

 

2.1

%

 

Income before income taxes

$

118,575

 

$

125,034

 

$

128,168

 

$

128,470

 

$

126,735

 

 

 

 

$

8,160

 

 

6.9

%

$

118,575

 

$

126,735

 

$

8,160

 

 

6.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life Insurance - Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Post-IPO direct premiums (4)

$

448,657

 

$

460,061

 

$

465,354

 

$

469,565

 

$

477,227

 

 

 

 

$

28,570

 

 

6.4

%

$

448,657

 

$

477,227

 

$

28,570

 

 

6.4

%

 

Pre-IPO direct premiums (5)

 

344,597

 

 

343,392

 

 

339,232

 

 

338,230

 

 

335,652

 

 

 

 

 

(8,945

)

 

-2.6

%

 

344,597

 

 

335,652

 

 

(8,945

)

 

-2.6

%

 

Total direct premiums

$

793,254

 

$

803,453

 

$

804,586

 

$

807,796

 

$

812,880

 

 

 

 

$

19,626

 

 

2.5

%

$

793,254

 

$

812,880

 

$

19,626

 

 

2.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiums ceded to IPO coinsurers

$

234,614

 

$

231,805

 

$

226,869

 

$

224,240

 

$

220,240

 

 

 

 

$

(14,374

)

 

-6.1

%

$

234,614

 

$

220,240

 

$

(14,374

)

 

-6.1

%

 

% of Pre-IPO direct premiums

 

68.1

%

 

67.5

%

 

66.9

%

 

66.3

%

 

65.6

%

 

 

 

nm

 

nm

 

 

68.1

%

 

65.6

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims, net (6)

$

328,805

 

$

334,266

 

$

338,903

 

$

341,178

 

$

348,148

 

 

 

 

$

19,343

 

 

5.9

%

$

328,805

 

$

348,148

 

$

19,343

 

 

5.9

%

 

% of adjusted direct premiums

 

58.9

%

 

58.5

%

 

58.7

%

 

58.5

%

 

58.7

%

 

 

 

nm

 

nm

 

 

58.9

%

 

58.7

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DAC amortization & insurance commissions

$

65,163

 

$

66,393

 

$

67,595

 

$

68,537

 

$

70,093

 

 

 

 

$

4,931

 

 

7.6

%

$

65,163

 

$

70,093

 

$

4,931

 

 

7.6

%

 

% of adjusted direct premiums

 

11.7

%

 

11.6

%

 

11.7

%

 

11.7

%

 

11.8

%

 

 

 

nm

 

nm

 

 

11.7

%

 

11.8

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance expenses, net (7)

$

46,097

 

$

45,955

 

$

43,052

 

$

45,371

 

$

47,663

 

 

 

 

$

1,566

 

 

3.4

%

$

46,097

 

$

47,663

 

$

1,566

 

 

3.4

%

 

% of adjusted direct premiums

 

8.3

%

 

8.0

%

 

7.5

%

 

7.8

%

 

8.0

%

 

 

 

nm

 

nm

 

 

8.3

%

 

8.0

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Term Life income before income taxes

$

118,575

 

$

125,034

 

$

128,168

 

$

128,470

 

$

126,735

 

 

 

 

$

8,160

 

 

6.9

%

$

118,575

 

$

126,735

 

$

8,160

 

 

6.9

%

 

Term Life operating margin (8)

 

21.2

%

 

21.9

%

 

22.2

%

 

22.0

%

 

21.4

%

 

 

 

nm

 

nm

 

 

21.2

%

 

21.4

%

nm

 

nm

 

 

(1)
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements.
(2)
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers.
(3)
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers.
(4)
Post-IPO direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions.
(5)
Pre-IPO direct premiums - direct premiums subject to the 2010 IPO coinsurance transactions.
(6)
Benefits and claims, net - benefits & claims and remeasurement (gain)/loss 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 Q1

 

 

 

 

 

YOY YTD

 

 

(Dollars in thousands, except as noted)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

129,515

 

 

130,206

 

 

132,149

 

 

134,313

 

 

135,208

 

 

 

 

 

5,693

 

 

4.4

%

 

129,515

 

 

135,208

 

 

5,693

 

 

4.4

%

 

 

New life-licensed representatives

 

9,983

 

 

11,529

 

 

12,518

 

 

11,117

 

 

11,118

 

 

 

 

 

1,135

 

 

11.4

%

 

9,983

 

 

11,118

 

 

1,135

 

 

11.4

%

 

 

Non-renewal and terminated representatives

 

(9,292

)

 

(9,586

)

 

(10,354

)

 

(10,222

)

 

(9,896

)

 

 

 

 

(604

)

 

-6.5

%

 

(9,292

)

 

(9,896

)

 

(604

)

 

-6.5

%

 

Life-insurance licensed sales force, end of period

 

130,206

 

 

132,149

 

 

134,313

 

 

135,208

 

 

136,430

 

 

 

 

 

6,224

 

 

4.8

%

 

130,206

 

 

136,430

 

 

6,224

 

 

4.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

65.5

 

$

72.3

 

$

68.0

 

$

66.0

 

$

70.7

 

 

 

 

$

5.3

 

 

8.0

%

$

65.5

 

$

70.7

 

$

5.3

 

 

8.0

%

 

 

Additions and increases in premium

 

18.4

 

 

20.6

 

 

19.5

 

 

18.2

 

 

18.2

 

 

 

 

 

(0.2

)

 

-0.9

%

 

18.4

 

 

18.2

 

 

(0.2

)

 

-0.9

%

 

 

 

 

Total estimated annualized issued term life premium

$

83.8

 

$

92.9

 

$

87.5

 

$

84.2

 

$

88.9

 

 

 

 

$

5.1

 

 

6.1

%

$

83.8

 

$

88.9

 

$

5.1

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

71,324

 

 

76,946

 

 

71,104

 

 

72,544

 

 

84,561

 

 

 

 

 

13,237

 

 

18.6

%

 

71,324

 

 

84,561

 

 

13,237

 

 

18.6

%

 

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

$

918

 

$

940

 

$

957

 

$

910

 

$

836

 

 

 

 

$

(82

)

 

-8.9

%

$

918

 

$

836

 

$

(82

)

 

-8.9

%

 

Adjusted issued term life policies (3)

$

83,050

 

$

89,316

 

$

81,372

 

$

79,282

 

$

84,561

 

 

 

 

$

1,511

 

 

1.8

%

$

83,050

 

$

84,561

 

$

1,511

 

 

1.8

%

 

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

$

788

 

$

810

 

$

836

 

$

833

 

$

836

 

 

 

 

$

48

 

 

6.1

%

$

788

 

$

836

 

$

48

 

 

6.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

903,404

 

$

909,632

 

$

914,438

 

$

912,785

 

$

916,808

 

 

 

 

$

13,404

 

 

1.5

%

$

903,404

 

$

916,808

 

$

13,404

 

 

1.5

%

 

 

Issued term life face amount (4)

 

24,773

 

 

27,651

 

 

26,049

 

 

25,349

 

 

28,124

 

 

 

 

 

3,352

 

 

13.5

%

 

24,773

 

 

28,124

 

 

3,352

 

 

13.5

%

 

 

Terminated term life face amount

 

(19,787

)

 

(19,298

)

 

(21,033

)

 

(22,776

)

 

(22,210

)

 

 

 

 

(2,424

)

 

-12.2

%

 

(19,787

)

 

(22,210

)

 

(2,424

)

 

-12.2

%

 

 

Foreign currency impact, net

 

1,242

 

 

(3,547

)

 

(6,669

)

 

1,450

 

 

124

 

 

 

 

 

(1,119

)

 

-90.1

%

 

1,242

 

 

124

 

 

(1,119

)

 

-90.1

%

 

Term life face amount in-force, end of period

$

909,632

 

$

914,438

 

$

912,785

 

$

916,808

 

$

922,845

 

 

 

 

$

13,213

 

 

1.5

%

$

909,632

 

$

922,845

 

$

13,213

 

 

1.5

%

 

(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)
Provided for comparability of year-over-year results of term life issued policies and reflects the estimated number of policies issued after adjusting for a consistent basis of insured lives per policy following the Q4 2022 new product launch
(4)
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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Investment & Savings Products Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

$

103,242

 

$

88,701

 

$

67,962

 

$

66,473

 

$

72,388

 

 

 

 

$

(30,853

)

 

-29.9

%

$

103,242

 

$

72,388

 

$

(30,853

)

 

-29.9

%

 

Asset-based

 

113,112

 

 

108,101

 

 

107,483

 

 

105,357

 

 

111,904

 

 

 

 

 

(1,208

)

 

-1.1

%

 

113,112

 

 

111,904

 

 

(1,208

)

 

-1.1

%

 

Account-based

 

21,541

 

 

22,592

 

 

22,910

 

 

23,348

 

 

22,790

 

 

 

 

 

1,249

 

 

5.8

%

 

21,541

 

 

22,790

 

 

1,249

 

 

5.8

%

 

Other, net

 

3,144

 

 

3,022

 

 

3,342

 

 

3,102

 

 

3,120

 

 

 

 

 

(24

)

 

-0.8

%

 

3,144

 

 

3,120

 

 

(24

)

 

-0.8

%

 

Revenues

 

241,039

 

 

222,416

 

 

201,697

 

 

198,280

 

 

210,202

 

 

 

 

 

(30,836

)

 

-12.8

%

 

241,039

 

 

210,202

 

 

(30,836

)

 

-12.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of DAC

 

1,446

 

 

1,421

 

 

1,378

 

 

1,336

 

 

1,493

 

 

 

 

 

46

 

 

3.2

%

 

1,446

 

 

1,493

 

 

46

 

 

3.2

%

 

Insurance commissions

 

3,646

 

 

3,450

 

 

3,419

 

 

3,320

 

 

3,308

 

 

 

 

 

(338

)

 

-9.3

%

 

3,646

 

 

3,308

 

 

(338

)

 

-9.3

%

 

Sales commissions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales-based

 

74,606

 

 

63,403

 

 

48,775

 

 

47,927

 

 

52,452

 

 

 

 

 

(22,154

)

 

-29.7

%

 

74,606

 

 

52,452

 

 

(22,154

)

 

-29.7

%

 

Asset-based

 

53,366

 

 

50,876

 

 

51,549

 

 

51,047

 

 

54,276

 

 

 

 

 

910

 

 

1.7

%

 

53,366

 

 

54,276

 

 

910

 

 

1.7

%

 

Other operating expenses

 

40,936

 

 

40,249

 

 

37,355

 

 

38,038

 

 

42,567

 

 

 

 

 

1,631

 

 

4.0

%

 

40,936

 

 

42,567

 

 

1,631

 

 

4.0

%

 

Benefits and expenses

 

174,001

 

 

159,398

 

 

142,476

 

 

141,669

 

 

154,095

 

 

 

 

 

(19,905

)

 

-11.4

%

 

174,001

 

 

154,095

 

 

(19,905

)

 

-11.4

%

 

Income before income taxes

$

67,038

 

$

63,017

 

$

59,222

 

$

56,612

 

$

56,107

 

 

 

 

$

(10,931

)

 

-16.3

%

$

67,038

 

$

56,107

 

$

(10,931

)

 

-16.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fees paid based on client asset values (1)

$

8,037

 

$

7,917

 

$

7,980

 

$

8,004

 

$

8,034

 

 

 

 

$

(3

)

nm

 

$

8,037

 

$

8,034

 

$

(3

)

nm

 

 

Fees paid based on fee-generating positions (2)

 

10,948

 

 

9,974

 

 

9,486

 

 

9,665

 

 

11,528

 

 

 

 

 

580

 

 

5.3

%

 

10,948

 

 

11,528

 

 

580

 

 

5.3

%

 

Other operating expenses

 

21,951

 

 

22,358

 

 

19,889

 

 

20,369

 

 

23,005

 

 

 

 

 

1,054

 

 

4.8

%

 

21,951

 

 

23,005

 

 

1,054

 

 

4.8

%

 

Total other operating expenses

$

40,936

 

$

40,249

 

$

37,355

 

$

38,038

 

$

42,567

 

 

 

 

$

1,631

 

 

4.0

%

$

40,936

 

$

42,567

 

$

1,631

 

 

4.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

1.20

%

 

1.27

%

 

1.23

%

 

1.21

%

 

1.21

%

 

 

 

nm

 

nm

 

 

1.20

%

 

1.21

%

nm

 

nm

 

 

Canada

 

1.00

%

 

0.78

%

 

0.32

%

 

0.31

%

 

0.33

%

 

 

 

nm

 

nm

 

 

1.00

%

 

0.33

%

nm

 

nm

 

 

Total

 

1.16

%

 

1.21

%

 

1.17

%

 

1.15

%

 

1.13

%

 

 

 

nm

 

nm

 

 

1.16

%

 

1.13

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

0.039

%

 

0.040

%

 

0.042

%

 

0.040

%

 

0.042

%

 

 

 

nm

 

nm

 

 

0.039

%

 

0.042

%

nm

 

nm

 

 

Canada

 

0.108

%

 

0.106

%

 

0.105

%

 

0.103

%

 

0.102

%

 

 

 

nm

 

nm

 

 

0.108

%

 

0.102

%

nm

 

nm

 

 

Total

 

0.049

%

 

0.051

%

 

0.052

%

 

0.050

%

 

0.052

%

 

 

 

nm

 

nm

 

 

0.049

%

 

0.052

%

nm

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

3.48

 

$

4.08

 

$

4.31

 

$

4.37

 

$

3.58

 

 

 

 

nm

 

nm

 

$

3.48

 

$

3.58

 

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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

1,298.6

 

$

1,151.4

 

$

931.8

 

$

883.8

 

$

971.7

 

 

 

 

$

(326.9

)

 

-25.2

%

$

1,298.6

 

$

971.7

 

$

(326.9

)

 

-25.2

%

 

 

Canada Retail Mutual Funds

 

437.6

 

 

250.6

 

 

112.2

 

 

112.0

 

 

149.8

 

 

 

 

 

(287.9

)

 

-65.8

%

 

437.6

 

 

149.8

 

 

(287.9

)

 

-65.8

%

 

 

Indexed Annuities

 

57.5

 

 

70.2

 

 

55.8

 

 

69.2

 

 

80.7

 

 

 

 

 

23.2

 

 

40.4

%

 

57.5

 

 

80.7

 

 

23.2

 

 

40.4

%

 

 

Variable Annuities and other

 

668.4

 

 

617.3

 

 

542.5

 

 

548.0

 

 

556.4

 

 

 

 

 

(112.0

)

 

-16.8

%

 

668.4

 

 

556.4

 

 

(112.0

)

 

-16.8

%

 

 

 

 

Total sales-based revenue generating product sales

 

2,462.1

 

 

2,089.5

 

 

1,642.3

 

 

1,612.9

 

 

1,758.6

 

 

 

 

 

(703.6

)

 

-28.6

%

 

2,462.1

 

 

1,758.6

 

 

(703.6

)

 

-28.6

%

 

 

Managed Accounts

 

453.7

 

 

451.3

 

 

319.6

 

 

288.1

 

 

306.1

 

 

 

 

 

(147.6

)

 

-32.5

%

 

453.7

 

 

306.1

 

 

(147.6

)

 

-32.5

%

 

 

Canada Retail Mutual Funds - no upfront sales comm

 

82.2

 

 

97.5

 

 

157.9

 

 

156.6

 

 

183.4

 

 

 

 

 

101.2

 

 

123.0

%

 

82.2

 

 

183.4

 

 

101.2

 

 

123.0

%

 

 

Segregated Funds

 

67.3

 

 

51.3

 

 

41.6

 

 

35.0

 

 

51.9

 

 

 

 

 

(15.4

)

 

-22.9

%

 

67.3

 

 

51.9

 

 

(15.4

)

 

-22.9

%

 

 

 

 

Total product sales

$

3,065.4

 

$

2,689.6

 

$

2,161.5

 

$

2,092.5

 

$

2,300.0

 

 

 

 

$

(765.4

)

 

-25.0

%

$

3,065.4

 

$

2,300.0

 

$

(765.4

)

 

-25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Canada Retail Mutual Funds

$

519.9

 

$

348.1

 

$

270.2

 

$

268.6

 

$

333.2

 

 

 

 

$

(186.7

)

 

-35.9

%

$

519.9

 

$

333.2

 

$

(186.7

)

 

-35.9

%

 

 

Segregated Funds

 

67.3

 

 

51.3

 

 

41.6

 

 

35.0

 

 

51.9

 

 

 

 

 

(15.4

)

 

-22.9

%

 

67.3

 

 

51.9

 

 

(15.4

)

 

-22.9

%

 

 

 

Total Canada product sales

 

587.1

 

 

399.4

 

 

311.8

 

 

303.5

 

 

385.0

 

 

 

 

 

(202.1

)

 

-34.4

%

 

587.1

 

 

385.0

 

 

(202.1

)

 

-34.4

%

 

 

 

Total U.S. product sales

 

2,478.2

 

 

2,290.1

 

 

1,849.7

 

 

1,789.0

 

 

1,914.9

 

 

 

 

 

(563.3

)

 

-22.7

%

 

2,478.2

 

 

1,914.9

 

 

(563.3

)

 

-22.7

%

 

 

 

 

Total product sales

$

3,065.4

 

$

2,689.6

 

$

2,161.5

 

$

2,092.5

 

$

2,300.0

 

 

 

 

$

(765.4

)

 

-25.0

%

$

3,065.4

 

$

2,300.0

 

$

(765.4

)

 

-25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Client asset values, beginning of period ($mills)

$

97,312

 

$

93,708

 

$

82,291

 

$

78,737

 

$

83,949

 

 

 

 

$

(13,363

)

 

-13.7

%

$

97,312

 

$

83,949

 

$

(13,363

)

 

-13.7

%

 

 

Inflows

 

3,065

 

 

2,690

 

 

2,161

 

 

2,093

 

 

2,300

 

 

 

 

 

(765

)

 

-25.0

%

 

3,065

 

 

2,300

 

 

(765

)

 

-25.0

%

 

 

Outflows (1)

 

(1,900

)

 

(1,797

)

 

(1,447

)

 

(1,444

)

 

(1,658

)

 

 

 

 

242

 

 

12.7

%

 

(1,900

)

 

(1,658

)

 

242

 

 

12.7

%

 

 

 

 

Net flows

 

1,166

 

 

893

 

 

714

 

 

649

 

 

642

 

 

 

 

 

(524

)

 

-44.9

%

 

1,166

 

 

642

 

 

(524

)

 

-44.9

%

 

 

Foreign currency impact, net

 

171

 

 

(474

)

 

(802

)

 

174

 

 

16

 

 

 

 

 

(155

)

 

-90.9

%

 

171

 

 

16

 

 

(155

)

 

-90.9

%

 

 

Change in market value, net and other (2)

 

(4,941

)

 

(11,836

)

 

(3,466

)

 

4,388

 

 

3,014

 

 

 

 

 

7,955

 

nm

 

 

(4,941

)

 

3,014

 

 

7,955

 

nm

 

 

Client asset values, end of period

$

93,708

 

$

82,291

 

$

78,737

 

$

83,949

 

$

87,621

 

 

 

 

$

(6,087

)

 

-6.5

%

$

93,708

 

$

87,621

 

$

(6,087

)

 

-6.5

%

 

 

Annualized net flows as % of beginning of period asset values

 

4.8

%

 

3.8

%

 

3.5

%

 

3.3

%

 

3.1

%

 

 

 

 

-1.7

%

nm

 

 

4.8

%

 

3.1

%

 

-1.7

%

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average client asset values ($mills)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Retail Mutual Funds

$

46,429

 

$

42,870

 

$

40,331

 

$

40,402

 

$

42,096

 

 

 

 

$

(4,333

)

 

-9.3

%

$

46,429

 

$

42,096

 

$

(4,333

)

 

-9.3

%

 

 

Canada Retail Mutual Funds

 

12,119

 

 

11,539

 

 

10,840

 

 

10,759

 

 

11,345

 

 

 

 

 

(773

)

 

-6.4

%

 

12,119

 

 

11,345

 

 

(773

)

 

-6.4

%

 

 

Managed Accounts

 

7,077

 

 

6,960

 

 

6,817

 

 

6,949

 

 

7,338

 

 

 

 

 

261

 

 

3.7

%

 

7,077

 

 

7,338

 

 

261

 

 

3.7

%

 

 

Indexed Annuities

 

2,650

 

 

2,677

 

 

2,696

 

 

2,710

 

 

2,729

 

 

 

 

 

79

 

 

3.0

%

 

2,650

 

 

2,729

 

 

79

 

 

3.0

%

 

 

Variable Annuities and other

 

23,218

 

 

21,431

 

 

20,269

 

 

20,137

 

 

20,744

 

 

 

 

 

(2,474

)

 

-10.7

%

 

23,218

 

 

20,744

 

 

(2,474

)

 

-10.7

%

 

 

Segregated Funds

 

2,710

 

 

2,517

 

 

2,368

 

 

2,299

 

 

2,329

 

 

 

 

 

(382

)

 

-14.1

%

 

2,710

 

 

2,329

 

 

(382

)

 

-14.1

%

 

 

 

 

Total

$

94,203

 

$

87,994

 

$

83,320

 

$

83,256

 

$

86,581

 

 

 

 

$

(7,622

)

 

-8.1

%

$

94,203

 

$

86,581

 

$

(7,622

)

 

-8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada Retail Mutual Funds

$

12,119

 

$

11,539

 

$

10,840

 

$

10,759

 

$

11,345

 

 

 

 

$

(773

)

 

-6.4

%

$

12,119

 

$

11,345

 

$

(773

)

 

-6.4

%

 

 

Segregated Funds

 

2,710

 

 

2,517

 

 

2,368

 

 

2,299

 

 

2,329

 

 

 

 

 

(382

)

 

-14.1

%

 

2,710

 

 

2,329

 

 

(382

)

 

-14.1

%

 

 

 

Total Canada average client assets

 

14,829

 

 

14,056

 

 

13,208

 

 

13,058

 

 

13,674

 

 

 

 

 

(1,155

)

 

-7.8

%

 

14,829

 

 

13,674

 

 

(1,155

)

 

-7.8

%

 

 

 

Total U.S. average client assets

 

79,374

 

 

73,938

 

 

70,112

 

 

70,198

 

 

72,907

 

 

 

 

 

(6,467

)

 

-8.1

%

 

79,374

 

 

72,907

 

 

(6,467

)

 

-8.1

%

 

 

 

 

Total average client assets

$

94,203

 

$

87,994

 

$

83,320

 

$

83,256

 

$

86,581

 

 

 

 

$

(7,622

)

 

-8.1

%

$

94,203

 

$

86,581

 

$

(7,622

)

 

-8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recordkeeping and custodial

 

2,243

 

 

2,277

 

 

2,295

 

 

2,309

 

 

2,316

 

 

 

 

 

73

 

 

3.2

%

 

2,243

 

 

2,316

 

 

73

 

 

3.2

%

 

 

Recordkeeping only

 

797

 

 

812

 

 

820

 

 

825

 

 

829

 

 

 

 

 

32

 

 

4.1

%

 

797

 

 

829

 

 

32

 

 

4.1

%

 

 

 

 

Total

 

3,040

 

 

3,089

 

 

3,115

 

 

3,134

 

 

3,145

 

 

 

 

 

105

 

 

3.5

%

 

3,040

 

 

3,145

 

 

105

 

 

3.5

%

 

(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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands, except as noted)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Senior Health Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commissions and fees (1)

$

1,278

 

$

9,343

 

$

14,601

 

$

22,198

 

$

15,755

 

 

 

 

$

14,477

 

nm

 

$

1,278

 

$

15,755

 

$

14,477

 

nm

 

 

Other, net (2)

 

4,553

 

 

2,471

 

 

2,583

 

 

5,655

 

 

2,955

 

 

 

 

 

(1,597

)

 

-35.1

%

 

4,553

 

 

2,955

 

 

(1,597

)

 

-35.1

%

 

Revenues

 

5,831

 

 

11,814

 

 

17,183

 

 

27,853

 

 

18,710

 

 

 

 

 

12,879

 

nm

 

 

5,831

 

 

18,710

 

 

12,879

 

nm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contract acquisition costs (3)

 

20,649

 

 

19,384

 

 

13,446

 

 

14,952

 

 

14,984

 

 

 

 

 

(5,665

)

 

-27.4

%

 

20,649

 

 

14,984

 

 

(5,665

)

 

-27.4

%

 

Adjusted other operating expenses

 

7,868

 

 

8,514

 

 

7,461

 

 

8,617

 

 

7,488

 

 

 

 

 

(380

)

 

-4.8

%

 

7,868

 

 

7,488

 

 

(380

)

 

-4.8

%

 

Adjusted operating benefits and expenses

 

28,517

 

 

27,898

 

 

20,907

 

 

23,568

 

 

22,471

 

 

 

 

 

(6,045

)

 

-21.2

%

 

28,517

 

 

22,471

 

 

(6,045

)

 

-21.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income before income taxes including NCI

$

(22,686

)

$

(16,084

)

$

(3,723

)

$

4,285

 

$

(3,762

)

 

 

 

$

18,925

 

 

83.4

%

$

(22,686

)

$

(3,762

)

$

18,925

 

 

83.4

%

 

Non-controlling interest before income taxes

 

(3,668

)

 

(3,129

)

 

—

 

 

—

 

 

—

 

 

 

 

 

3,668

 

 

100.0

%

 

(3,668

)

 

—

 

 

3,668

 

 

100.0

%

 

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

$

(19,018

)

$

(12,955

)

$

(3,723

)

$

4,285

 

$

(3,762

)

 

 

 

$

15,256

 

 

80.2

%

$

(19,018

)

$

(3,762

)

$

15,256

 

 

80.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Health EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating income before income taxes including NCI

$

(22,686

)

$

(16,084

)

$

(3,723

)

$

4,285

 

$

(3,762

)

 

 

 

$

18,925

 

 

83.4

%

$

(22,686

)

$

(3,762

)

$

18,925

 

 

83.4

%

 

Less: Amortization of intangibles

 

(2,600

)

 

(2,800

)

 

(2,800

)

 

(2,800

)

 

(2,800

)

 

 

 

 

(200

)

 

-7.7

%

 

(2,600

)

 

(2,800

)

 

(200

)

 

-7.7

%

 

Less: Depreciation

 

(245

)

 

(226

)

 

(221

)

 

(211

)

 

(200

)

 

 

 

 

45

 

 

18.3

%

 

(245

)

 

(200

)

 

45

 

 

18.3

%

 

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

$

(19,841

)

$

(13,058

)

$

(703

)

$

7,297

 

$

(762

)

 

 

 

$

19,080

 

 

96.2

%

$

(19,841

)

$

(762

)

$

19,080

 

 

96.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial Analysis and Key Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Senior Health submitted policies (5)

 

26,231

 

 

19,652

 

 

16,095

 

 

23,060

 

 

19,826

 

 

 

 

 

(6,405

)

 

-24.4

%

 

26,231

 

 

19,826

 

 

(6,405

)

 

-24.4

%

 

Senior Health approved policies (6)

 

23,594

 

 

17,925

 

 

14,862

 

 

20,705

 

 

18,413

 

 

 

 

 

(5,181

)

 

-22.0

%

 

23,594

 

 

18,413

 

 

(5,181

)

 

-22.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Primerica representatives Senior Health certified

 

42,147

 

 

60,412

 

 

83,280

 

 

93,348

 

 

94,623

 

 

 

 

 

52,476

 

 

124.5

%

 

42,147

 

 

94,623

 

 

52,476

 

 

124.5

%

 

Senior Health submitted policies sourced by Primerica representatives

 

988

 

 

831

 

 

1,016

 

 

5,666

 

 

2,073

 

 

 

 

 

1,085

 

 

109.8

%

 

988

 

 

2,073

 

 

1,085

 

 

109.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTV per approved policy (7)

$

862

 

$

820

 

$

868

 

$

888

 

$

856

 

 

 

 

$

(6

)

 

-0.7

%

$

862

 

$

856

 

$

(6

)

 

-0.7

%

 

CAC per approved policy (7)

$

875

 

$

1,081

 

$

905

 

$

722

 

$

814

 

 

 

 

$

(61

)

 

-7.0

%

$

875

 

$

814

 

$

(61

)

 

-7.0

%

 

LTV / CAC multiple

 

1.0

x

 

0.8

x

 

1.0

x

 

1.2

x

 

1.1

x

 

 

 

 

0.1

x

nm

 

 

1.0

x

 

1.1

x

 

0.1

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, or are expected to be, 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 Q1

 

 

 

 

 

YOY YTD

 

(Dollars in thousands)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

 

YTD 2022

 

YTD 2023

 

$
Change

 

%
Change

 

Corporate & Other Distributed Products Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Direct premiums

$

5,412

 

$

5,441

 

$

5,494

 

$

4,685

 

$

4,993

 

 

 

 

$

(419

)

 

-7.8

%

$

5,412

 

$

4,993

 

$

(419

)

 

-7.8

%

 

Ceded premiums

 

(1,439

)

 

(1,642

)

 

(1,454

)

 

(1,914

)

 

(1,304

)

 

 

 

 

136

 

 

9.4

%

 

(1,439

)

 

(1,304

)

 

136

 

 

9.4

%

 

Net premiums

 

3,973

 

 

3,799

 

 

4,040

 

 

2,772

 

 

3,689

 

 

 

 

 

(284

)

 

-7.1

%

 

3,973

 

 

3,689

 

 

(284

)

 

-7.1

%

 

Adjusted net investment income

 

21,004

 

 

22,538

 

 

24,414

 

 

28,940

 

 

31,392

 

 

 

 

 

10,388

 

 

49.5

%

 

21,004

 

 

31,392

 

 

10,388

 

 

49.5

%

 

Commissions and fees:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepaid Legal Services

 

4,287

 

 

4,664

 

 

5,672

 

 

3,821

 

 

3,991

 

 

 

 

 

(296

)

 

-6.9

%

 

4,287

 

 

3,991

 

 

(296

)

 

-6.9

%

 

Auto and Homeowners Insurance

 

1,591

 

 

2,056

 

 

2,647

 

 

1,994

 

 

1,831

 

 

 

 

 

240

 

 

15.1

%

 

1,591

 

 

1,831

 

 

240

 

 

15.1

%

 

Mortgage loans

 

4,818

 

 

3,128

 

 

2,103

 

 

1,656

 

 

1,211

 

 

 

 

 

(3,606

)

 

-74.9

%

 

4,818

 

 

1,211

 

 

(3,606

)

 

-74.9

%

 

Other sales commissions

 

1,932

 

 

2,103

 

 

2,090

 

 

1,872

 

 

1,676

 

 

 

 

 

(255

)

 

-13.2

%

 

1,932

 

 

1,676

 

 

(255

)

 

-13.2

%

 

Other, net

 

1,117

 

 

889

 

 

1,621

 

 

1,341

 

 

1,200

 

 

 

 

 

83

 

 

7.4

%

 

1,117

 

 

1,200

 

 

83

 

 

7.4

%

 

Adjusted operating revenues

 

38,721

 

 

39,176

 

 

42,587

 

 

42,396

 

 

44,990

 

 

 

 

 

6,270

 

 

16.2

%

 

38,721

 

 

44,990

 

 

6,270

 

 

16.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits and claims

 

1,881

 

 

3,743

 

 

2,809

 

 

3,972

 

 

4,327

 

 

 

 

 

2,446

 

 

130.0

%

 

1,881

 

 

4,327

 

 

2,446

 

 

130.0

%

 

Future policy benefits remeasurement (gain)/loss

 

162

 

 

36

 

 

(84

)

 

958

 

 

(477

)

 

 

 

 

(638

)

nm

 

 

162

 

 

(477

)

 

(638

)

nm

 

 

Amortization of DAC

 

407

 

 

240

 

 

438

 

 

87

 

 

362

 

 

 

 

 

(45

)

 

-11.0

%

 

407

 

 

362

 

 

(45

)

 

-11.0

%

 

Insurance commissions

 

282

 

 

290

 

 

283

 

 

237

 

 

241

 

 

 

 

 

(41

)

 

-14.6

%

 

282

 

 

241

 

 

(41

)

 

-14.6

%

 

Insurance expenses

 

1,237

 

 

1,132

 

 

1,081

 

 

1,160

 

 

1,229

 

 

 

 

 

(8

)

 

-0.6

%

 

1,237

 

 

1,229

 

 

(8

)

 

-0.6

%

 

Sales commissions

 

5,952

 

 

5,484

 

 

5,592

 

 

4,187

 

 

4,147

 

 

 

 

 

(1,805

)

 

-30.3

%

 

5,952

 

 

4,147

 

 

(1,805

)

 

-30.3

%

 

Interest expense

 

6,853

 

 

6,814

 

 

6,802

 

 

6,768

 

 

6,690

 

 

 

 

 

(163

)

 

-2.4

%

 

6,853

 

 

6,690

 

 

(163

)

 

-2.4

%

 

Adjusted other operating expenses

 

36,475

 

 

30,530

 

 

28,974

 

 

33,788

 

 

39,480

 

 

 

 

 

3,005

 

 

8.2

%

 

36,475

 

 

39,480

 

 

3,005

 

 

8.2

%

 

Adjusted benefits and expenses

 

53,248

 

 

48,270

 

 

45,894

 

 

51,158

 

 

55,999

 

 

 

 

 

2,751

 

 

5.2

%

 

53,248

 

 

55,999

 

 

2,751

 

 

5.2

%

 

Adjusted operating income before income taxes

$

(14,527

)

$

(9,094

)

$

(3,307

)

$

(8,762

)

$

(11,008

)

 

 

 

$

3,519

 

 

24.2

%

$

(14,527

)

$

(11,008

)

$

3,519

 

 

24.2

%

 

14 of 18

 

 

 

Investment Portfolio - Summary of Holdings

PRIMERICA, INC.

Financial Supplement

 

 

 

 

 

 

 

 

 

As of or for the period ended March 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% 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

 

$

585,277

 

$

585,277

 

$

-

 

 

18.3

%

 

16.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Treasury

 

 

20,868

 

 

21,401

 

 

(533

)

 

0.7

%

 

0.6

%

 

2.17

%

AAA

 

Government

 

 

227,578

 

 

247,938

 

 

(20,360

)

 

7.1

%

 

7.2

%

 

2.99

%

AA-

 

Tax-Exempt Municipal

 

 

33,865

 

 

36,896

 

 

(3,031

)

 

1.1

%

 

1.1

%

 

2.69

%

AA

 

Corporate

 

 

1,281,891

 

 

1,401,455

 

 

(119,564

)

 

40.1

%

 

40.5

%

 

3.64

%

BBB+

 

Mortgage Backed

 

 

420,787

 

 

488,770

 

 

(67,984

)

 

13.2

%

 

14.1

%

 

2.97

%

AAA

 

Asset Backed

 

 

171,255

 

 

185,201

 

 

(13,946

)

 

5.4

%

 

5.4

%

 

3.91

%

AA

 

CMBS

 

 

127,718

 

 

142,789

 

 

(15,071

)

 

4.0

%

 

4.1

%

 

3.47

%

AA-

 

Private

 

 

289,201

 

 

312,794

 

 

(23,594

)

 

9.0

%

 

9.0

%

 

4.70

%

BBB

 

Redeemable Preferred

 

 

3,960

 

 

4,248

 

 

(288

)

 

0.1

%

 

0.1

%

 

5.27

%

BBB-

 

 

 

 

 

 

Total Fixed Income

 

 

2,577,123

 

 

2,841,493

 

 

(264,370

)

 

80.6

%

 

82.1

%

 

3.57

%

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities and Other:

 

 

 

 

 

 

 

 

 

 

 

 

Perpetual Preferred

 

 

8,642

 

 

8,642

 

 

-

 

 

0.3

%

 

0.2

%

 

 

 

 

Common Stock

 

 

19,345

 

 

19,345

 

 

0

 

 

0.6

%

 

0.6

%

 

 

 

 

Mutual Fund

 

 

5,989

 

 

5,989

 

 

-

 

 

0.2

%

 

0.2

%

 

 

 

 

 

 

 

 

 

Total Equities

 

 

33,975

 

 

33,975

 

 

0

 

 

1.1

%

 

1.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,196,376

 

$

3,460,746

 

$

(264,370

)

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Public Corporate Portfolio by Sector

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insurance

 

$

158,538

 

$

176,162

 

$

(17,624

)

 

12.4

%

 

12.6

%

 

 

 

 

Energy

 

 

138,485

 

 

149,076

 

 

(10,591

)

 

10.8

%

 

10.6

%

 

 

 

 

Consumer Non Cyclical

 

 

131,381

 

 

145,198

 

 

(13,817

)

 

10.2

%

 

10.4

%

 

 

 

 

Reits

 

 

116,872

 

 

134,882

 

 

(18,011

)

 

9.1

%

 

9.6

%

 

 

 

 

Banking

 

 

113,869

 

 

117,834

 

 

(3,965

)

 

8.9

%

 

8.4

%

 

 

 

 

Consumer Cyclical

 

 

104,832

 

 

114,279

 

 

(9,447

)

 

8.2

%

 

8.2

%

 

 

 

 

Technology

 

 

102,709

 

 

108,906

 

 

(6,197

)

 

8.0

%

 

7.8

%

 

 

 

 

Capital Goods

 

 

68,155

 

 

72,794

 

 

(4,639

)

 

5.3

%

 

5.2

%

 

 

 

 

Basic Industry

 

 

66,499

 

 

73,085

 

 

(6,586

)

 

5.2

%

 

5.2

%

 

 

 

 

Finance Companies

 

 

54,767

 

 

61,692

 

 

(6,925

)

 

4.3

%

 

4.4

%

 

 

 

 

Electric

 

 

53,423

 

 

58,570

 

 

(5,147

)

 

4.2

%

 

4.2

%

 

 

 

 

Transportation

 

 

52,770

 

 

57,282

 

 

(4,512

)

 

4.1

%

 

4.1

%

 

 

 

 

Communications

 

 

46,970

 

 

50,312

 

 

(3,342

)

 

3.7

%

 

3.6

%

 

 

 

 

Brokerage

 

 

44,092

 

 

49,428

 

 

(5,336

)

 

3.4

%

 

3.5

%

 

 

 

 

Financial Other

 

 

8,582

 

 

9,586

 

 

(1,004

)

 

0.7

%

 

0.7

%

 

 

 

 

Natural Gas

 

 

7,315

 

 

7,737

 

 

(422

)

 

0.6

%

 

0.6

%

 

 

 

 

Industrial Other

 

 

6,071

 

 

6,917

 

 

(846

)

 

0.5

%

 

0.5

%

 

 

 

 

Utility Other

 

 

4,687

 

 

5,388

 

 

(701

)

 

0.4

%

 

0.4

%

 

 

 

 

Owned No Guarantee

 

 

1,875

 

 

2,325

 

 

(450

)

 

0.1

%

 

0.2

%

 

 

 

 

 

 

 

 

 

Total Corporate portfolio

 

$

1,281,891

 

$

1,401,455

 

$

(119,564

)

 

100.0

%

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-Maturity Securities - Effective Maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

< 1 Yr.

 

$

193,907

 

$

196,168

 

$

(2,261

)

 

7.5

%

 

6.9

%

 

3.64

%

 

 

 

1-2 Yrs.

 

 

254,773

 

 

262,286

 

 

(7,513

)

 

9.9

%

 

9.2

%

 

3.64

%

 

 

 

2-5 Yrs.

 

 

788,683

 

 

843,745

 

 

(55,062

)

 

30.6

%

 

29.7

%

 

3.75

%

 

 

 

5-10 Yrs.

 

 

1,065,998

 

 

1,219,338

 

 

(153,340

)

 

41.4

%

 

42.9

%

 

3.37

%

 

 

 

> 10 Yrs.

 

 

273,762

 

 

319,956

 

 

(46,194

)

 

10.6

%

 

11.3

%

 

3.78

%

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,577,123

 

$

2,841,493

 

$

(264,370

)

 

100.0

%

 

100.0

%

 

3.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 March 31, 2023

PRIMERICA, INC.

Financial Supplement

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Portfolio Quality Ratings (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

$

591,882

 

 

20.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AA

 

 

319,979

 

 

11.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A

 

 

709,522

 

 

25.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BBB

 

 

1,151,885

 

 

40.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Below Investment Grade

 

 

63,351

 

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NA

 

 

4,874

 

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Income

 

$

2,841,493

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

 

 

 

 

 

 

 

 

 

 

Amortized Cost

 

% of Total

 

Public Corporate asset class:

 

 

 

 

 

 

 

Private Placement asset class:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

11,844

 

 

0.8

%

 

 

 

AAA

 

$

-

 

 

—

 

 

AA

 

 

67,753

 

 

4.8

%

 

 

 

AA

 

 

9,232

 

 

3.0

%

 

A

 

 

362,431

 

 

25.9

%

 

 

 

A

 

 

71,784

 

 

22.9

%

 

BBB

 

 

896,836

 

 

64.0

%

 

 

 

BBB

 

 

229,996

 

 

73.5

%

 

Below Investment Grade

 

 

58,717

 

 

4.2

%

 

 

 

Below Investment Grade

 

 

1,783

 

 

0.6

%

 

NA

 

 

3,874

 

 

0.3

%

 

 

 

NA

 

 

-

 

 

—

 

 

 

 

 

 

 

Total Corporate

 

$

1,401,455

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Private

 

$

312,794

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CMBS asset class:

 

 

 

 

 

 

 

Mortgage-Backed asset class:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

63,976

 

 

44.8

%

 

 

 

AAA

 

$

438,933

 

 

89.8

%

 

AA

 

 

8,912

 

 

6.2

%

 

 

 

AA

 

 

49,615

 

 

10.2

%

 

A

 

 

69,901

 

 

49.0

%

 

 

 

A

 

 

129

 

 

0.0

%

 

BBB

 

 

-

 

 

—

 

 

 

 

BBB

 

 

-

 

 

—

 

 

Below Investment Grade

 

 

-

 

 

—

 

 

 

 

Below Investment Grade

 

 

72

 

 

0.0

%

 

NA

 

 

-

 

 

—

 

 

 

 

NA

 

 

22

 

 

0.0

%

 

 

 

 

 

 

Total CMBS

 

$

142,789

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Mortgage-Backed

 

$

488,770

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-Backed asset class:

 

 

 

 

 

 

 

Treasury & Government asset classes:

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

AAA

 

$

34,555

 

 

18.7

%

 

 

 

AAA

 

$

41,883

 

 

15.6

%

 

AA

 

 

11,445

 

 

6.2

%

 

 

 

AA

 

 

144,876

 

 

53.8

%

 

A

 

 

127,917

 

 

69.1

%

 

 

 

A

 

 

70,355

 

 

26.1

%

 

BBB

 

 

7,797

 

 

4.2

%

 

 

 

BBB

 

 

11,084

 

 

4.1

%

 

Below Investment Grade

 

 

1,639

 

 

0.9

%

 

 

 

Below Investment Grade

 

 

1,141

 

 

0.4

%

 

NA

 

 

1,849

 

 

1.0

%

 

 

 

NA

 

 

-

 

 

—

 

 

 

 

 

 

 

Total Asset-Backed

 

$

185,201

 

 

100.0

%

 

 

 

 

 

 

 

 

Total Treasury & Government

 

$

269,339

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAIC Designations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

$

1,376,420

 

 

55.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

 

1,052,469

 

 

42.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

 

64,324

 

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

 

7,794

 

 

0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

 

691

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

 

2,904

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Insurer Fixed Income (2)

 

 

2,504,602

 

 

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (3)

 

 

370,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

585,277

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Invested Assets

 

$

3,460,754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 Q1

(Dollars in thousands)

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

$
Change

 

%
Change

Net Investment Income by Source

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed-maturity securities (available-for-sale)

$

20,889

 

$

22,414

 

$

23,067

 

$

24,605

 

$

25,806

 

 

 

 

$

4,917

 

23.5%

 

Fixed-maturity securities (held-to-maturity)

 

15,515

 

 

15,815

 

 

16,283

 

 

16,309

 

 

16,435

 

 

 

 

 

920

 

5.9%

 

Equity Securities

 

387

 

 

371

 

 

373

 

 

377

 

 

380

 

 

 

 

 

(7

)

-1.8%

 

Deposit asset underlying 10% reinsurance treaty

 

589

 

 

485

 

 

557

 

 

2,134

 

 

2,377

 

 

 

 

 

1,788

 

nm

 

Deposit asset - Mark to Market

 

(2,099

)

 

(1,254

)

 

(68

)

 

(409

)

 

(327

)

 

 

 

 

1,772

 

84.4%

 

Policy loans and other invested assets

 

102

 

 

58

 

 

436

 

 

450

 

 

(72

)

 

 

 

 

(174

)

nm

 

Cash & cash equivalents

 

125

 

 

498

 

 

1,714

 

 

3,605

 

 

5,128

 

 

 

 

 

5,003

 

nm

 

 

 

 

 

Total investment income

 

35,508

 

 

38,387

 

 

42,362

 

 

47,072

 

 

49,727

 

 

 

 

 

14,219

 

40.0%

 

Investment expenses

 

1,088

 

 

1,288

 

 

1,733

 

 

2,233

 

 

2,227

 

 

 

 

 

1,139

 

104.7%

 

Interest Expense on Surplus Note

 

15,515

 

 

15,815

 

 

16,283

 

 

16,309

 

 

16,435

 

 

 

 

 

920

 

5.9%

 

 

 

 

 

Net investment income

$

18,905

 

$

21,284

 

$

24,346

 

$

28,530

 

$

31,065

 

 

 

 

$

12,160

 

64.3%

 

 

Fixed income book yield, end of period

 

3.18

%

 

3.25

%

 

3.34

%

 

3.44

%

 

3.57

%

 

 

 

 

 

 

 

 

New money yield

 

3.37

%

 

4.21

%

 

3.93

%

 

5.41

%

 

5.57

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YOY Q1

 

 

 

 

 

 

 

 

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

% Pt
Change

 

 

Fixed Income Portfolio Quality Ratings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rating

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AAA

 

21.0

%

 

22.0

%

 

21.5

%

 

21.6

%

 

20.8

%

 

 

 

 

-0.2

%

 

 

AA

 

11.2

%

 

11.2

%

 

11.1

%

 

11.5

%

 

11.3

%

 

 

 

 

0.1

%

 

 

A

 

23.7

%

 

23.0

%

 

23.0

%

 

24.6

%

 

25.0

%

 

 

 

 

1.3

%

 

 

BBB

 

39.8

%

 

39.6

%

 

40.1

%

 

39.9

%

 

40.5

%

 

 

 

 

0.7

%

 

 

Below Investment Grade

 

3.1

%

 

2.8

%

 

2.7

%

 

2.4

%

 

2.2

%

 

 

 

 

-0.8

%

 

 

NA

 

1.2

%

 

1.3

%

 

1.5

%

 

0.0

%

 

0.2

%

 

 

 

 

-1.1

%

 

 

 

 

 

 

Total Fixed Income

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

100.0

%

 

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average rating by amortized cost

A

 

A

 

A

 

A

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2023

 

 

 

As of March 31, 2023

 

 

 

 

 

 

As of March 31, 2023

 

 

 

 

 

 

 

 

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

$

20,934

 

$

22,148

 

AAA

 

Canada

$

85,124

 

$

93,652

 

 

 

AAA

$

2,021

 

$

2,118

 

 

2

Province of Ontario Canada

 

15,066

 

 

15,343

 

A+

 

United Kingdom

 

25,078

 

 

25,291

 

 

 

AA

 

—

 

 

—

 

 

3

Province of Quebec Canada

 

14,644

 

 

14,922

 

AA-

 

Australia

 

19,327

 

 

20,499

 

 

 

A

 

7,815

 

 

9,473

 

 

4

Bank of America Corp

 

12,985

 

 

13,177

 

A-

 

Mexico

 

6,586

 

 

7,692

 

 

 

BBB

 

9,603

 

 

10,634

 

 

5

Ontario Teachers' Pension Plan

 

12,832

 

 

14,333

 

AA+

 

France

 

6,160

 

 

6,392

 

 

 

Below Investment Grade

 

631

 

 

1,141

 

 

6

Province of Alberta Canada

 

12,068

 

 

12,831

 

A+

 

Bermuda

 

6,039

 

 

6,236

 

 

 

NA

 

—

 

 

—

 

 

7

Morgan Stanley

 

11,485

 

 

11,807

 

BBB+

 

Netherlands

 

5,475

 

 

5,470

 

 

 

 

Total

$

20,071

 

$

23,366

 

 

8

Wells Fargo & Co

 

11,043

 

 

11,291

 

BBB+

 

Ireland

 

5,467

 

 

5,457

 

 

 

 

 

 

 

 

 

 

 

9

Manulife Financial Corp

 

10,775

 

 

11,600

 

A

 

Japan

 

5,294

 

 

5,450

 

 

 

 

 

 

 

 

 

 

 

10

TC Energy Corp

 

10,342

 

 

11,644

 

BBB+

 

Malta

 

4,660

 

 

4,775

 

 

 

Non-Government Investments (1)

 

 

 

 

 

11

ConocoPhillips

 

9,514

 

 

10,700

 

A

 

Luxembourg

 

4,634

 

 

4,700

 

 

 

 

 

 

 

 

 

 

 

12

Province of Saskatchewan Canada

 

9,509

 

 

9,654

 

AA

 

Cayman Islands

 

3,579

 

 

3,620

 

 

 

AAA

$

2,930

 

$

2,999

 

 

13

Goldman Sachs Group Inc.

 

9,452

 

 

9,743

 

BBB+

 

Israel

 

3,510

 

 

3,558

 

 

 

AA

 

2,310

 

 

2,393

 

 

14

Enbridge Inc

 

9,100

 

 

9,879

 

BBB+

 

Brazil

 

2,455

 

 

2,681

 

 

 

A

 

40,187

 

 

42,474

 

 

15

Kemper Corp

 

8,370

 

 

9,094

 

BBB

 

Supranational

 

2,021

 

 

2,118

 

 

 

BBB

 

140,993

 

 

149,762

 

 

16

Fairfax Financial Holdings Ltd

 

8,363

 

 

9,802

 

BBB

 

Emerging Markets (2)

 

10,378

 

 

12,074

 

 

 

Below Investment Grade

 

4,034

 

 

4,181

 

 

17

Brookfield Corp

 

8,223

 

 

8,499

 

A-

 

All Other

 

 

20,098

 

 

21,149

 

 

 

NA

 

5,360

 

 

5,637

 

 

18

Intact Financial Corp

 

8,087

 

 

7,876

 

A+

 

 

Total

$

215,885

 

$

230,812

 

 

 

 

Total

$

195,815

 

$

207,447

 

 

19

Province of British Columbia Canada

 

8,029

 

 

8,331

 

AA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

Western & Southern Mutual Holdings

 

8,014

 

 

9,457

 

AA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

City of Toronto Canada

 

7,986

 

 

8,153

 

AA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22

Enterprise Products Partners

 

7,898

 

 

7,561

 

A-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23

Province of New Brunswick Canada

 

7,871

 

 

8,138

 

A+

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24

Boeing Co

 

7,682

 

 

7,802

 

BBB-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25

Province of Newfoundland and Labrador

 

7,543

 

 

8,223

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

257,816

 

$

272,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% of total fixed income portfolio

 

8.1

%

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
(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)

2018

 

2019

 

2020

 

2021

 

2022

 

Q1
2022

 

Q2
2022

 

Q3
2022

 

Q4
2022

 

Q1
2023

 

Q2
2023

Q3
2023

Q4
2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recruits

 

290,886

 

 

282,207

 

 

400,345

 

 

349,374

 

 

359,735

 

 

84,707

 

 

70,215

 

 

127,788

 

 

77,025

 

 

93,540

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Life-insurance licensed sales force, beginning of period

 

126,121

 

 

130,736

 

 

130,522

 

 

134,907

 

 

129,515

 

 

129,515

 

 

130,206

 

 

132,149

 

 

134,313

 

 

135,208

 

 

 

 

 

New life-licensed representatives

 

48,041

 

 

44,739

 

 

48,106

 

 

39,622

 

 

45,147

 

 

9,983

 

 

11,529

 

 

12,518

 

 

11,117

 

 

11,118

 

 

 

 

 

Non-renewal and terminated representatives

 

(43,426

)

 

(44,953

)

 

(43,721

)

 

(45,014

)

 

(39,454

)

 

(9,292

)

 

(9,586

)

 

(10,354

)

 

(10,222

)

 

(9,896

)

 

 

 

Life-insurance licensed sales force, end of period

 

130,736

 

 

130,522

 

 

134,907

 

 

129,515

 

 

135,208

 

 

130,206

 

 

132,149

 

 

134,313

 

 

135,208

 

 

136,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life policies

 

301,589

 

 

287,809

 

 

352,868

 

 

323,855

 

 

291,918

 

 

71,324

 

 

76,946

 

 

71,104

 

 

72,544

 

 

84,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issued term life face amount

$

95,209

 

$

93,994

 

$

109,436

 

$

108,521

 

$

103,822

 

$

24,773

 

$

27,651

 

$

26,049

 

$

25,349

 

$

28,124

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term life face amount in force, beginning of period

$

763,831

 

$

781,041

 

$

808,262

 

$

858,818

 

$

903,404

 

$

903,404

 

$

909,632

 

$

914,438

 

$

912,785

 

$

916,808

 

 

 

 

 

Issued term life face amount

 

95,209

 

 

93,994

 

 

109,436

 

 

108,521

 

 

103,822

 

 

24,773

 

 

27,651

 

 

26,049

 

 

25,349

 

 

28,124

 

 

 

 

 

Terminated term life face amount

 

(70,291

)

 

(71,519

)

 

(60,848

)

 

(64,798

)

 

(82,894

)

 

(19,787

)

 

(19,298

)

 

(21,033

)

 

(22,776

)

 

(22,210

)

 

 

 

 

Foreign currency impact, net

 

(7,708

)

 

4,746

 

 

1,968

 

 

862

 

 

(7,524

)

 

1,242

 

 

(3,547

)

 

(6,669

)

 

1,450

 

 

124

 

 

 

 

Term life face amount in force, end of period

$

781,041

 

$

808,262

 

$

858,818

 

$

903,404

 

$

916,808

 

$

909,632

 

$

914,438

 

$

912,785

 

$

916,808

 

$

922,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated annualized issued term life premium

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premium from new policies

$

250.8

 

$

244.8

 

$

303.6

 

$

297.2

 

$

271.9

 

$

65.5

 

$

72.3

 

$

68.0

 

$

66.0

 

$

70.7

 

 

 

 

 

Additions and increases in premium

 

55.2

 

 

60.2

 

 

68.9

 

 

77.0

 

 

76.7

 

 

18.4

 

 

20.6

 

 

19.5

 

 

18.2

 

 

18.2

 

 

 

 

 

 

Total estimated annualized issued term life premium

$

306.0

 

$

305.0

 

$

372.5

 

$

374.2

 

$

348.5

 

$

83.8

 

$

92.9

 

$

87.5

 

$

84.2

 

$

88.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings product sales

$

7,040.1

 

$

7,533.2

 

$

7,842.5

 

$

11,703.2

 

$

10,009.0

 

$

3,065.4

 

$

2,689.6

 

$

2,161.5

 

$

2,092.5

 

$

2,300.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment & Savings average client asset values

$

61,842

 

$

65,029

 

$

69,709

 

$

89,993

 

$

87,193

 

$

94,203

 

$

87,994

 

$

83,320

 

$

83,256

 

$

86,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closed U.S. Mortgage Volume (brokered)

$

—

 

$

31.1

 

$

442.5

 

$

1,229.2

 

$

567.2

 

$

235.9

 

$

152.7

 

$

99.8

 

$

78.9

 

$

55.6

 

 

 

 

 

18 of 18