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Primerica profit rises as investment sales hit record highs
In the quarter, Primerica reported investment and savings product sales of $4.4 billion and client assets of $140 billion, while its life-licensed sales force declined and life policy issuance fell.
Primerica’s quarterly results showed a split performance between its investment and savings business and its life insurance distribution, according to Yahoo Finance. For the quarter, the company’s net income increased 13% to $202 million, and earnings per diluted share rose 19% to $6.45, helping return on stockholders’ equity reach 32.1%. Total revenue grew 9% to $865 million.
The investment arm drove growth, with investment and savings product sales reaching a record $4.4 billion, up 23% year over year. Client asset values ended the period at an all-time high of $140 billion, up 16%, and net inflows added $397 million. Yahoo Finance said the gains translated into higher profitability, with ISP segment revenue up 21% to $361 million and pretax income up 31% to $104 million, supported by a rise in asset-based commission revenue.
Primerica also returned capital to shareholders during the quarter, including $135 million in buybacks and about $37 million in dividends, totaling $172 million. Its effective tax rate improved to 21.7% from 23.9% a year earlier, and its statutory risk-based capital ratio was about 440%.
At the same time, Yahoo Finance said the life insurance side showed softness, with the life-licensed sales force down 3% year over year to 148,612 representatives. Recruiting increased 2% to 82,346, but new life-licensed representatives fell 15% to 11,020, while the company issued 78,904 life insurance policies, down 12%, with total face amount issued falling 8% to $27.7 billion. Term Life revenue was roughly flat at $444 million, while segment pretax income declined 4% to $148 million.