Life-licensed sales force grew 4.4% to a
record 135,208 representatives
Term Life net premiums increased 5%;
adjusted direct premiums increased 6%
Investment and Savings Products sales
reached $10 billion for full year 2022; second largest in Company
history despite equity market volatility
Executed a successful senior health Medicare
annual enrollment period
Net earnings per diluted share (EPS) of
$3.54; return on stockholders’ equity (ROE) 31.6%
Diluted adjusted operating EPS of $3.49, up
19%; adjusted net operating income return on adjusted stockholders’
equity (ROAE) of 27.1%
Primerica, Inc. (NYSE: PRI) today announced financial results
for the quarter ended December 31, 2022. GAAP revenues were $686.9
million, down 5% from the prior year period. Net income was $131.8
million, earnings per diluted share was $3.54 and ROE was 31.6% for
the quarter. Net income, earnings per diluted share and ROE
comparisons to the prior year results are not meaningful due to a
goodwill impairment charge recognized in the fourth quarter of
2021.
Adjusted net operating revenues of $684.5 million decreased 5%
compared to the prior year’s fourth quarter. Adjusted net operating
income was $129.9 million, up 11% while diluted adjusted operating
earnings per share of $3.49 increased 19% year-over-year. ROAE was
27.1% for the quarter. The Company adjusts operating results to
exclude non-recurring items that cause incomparability between
periods. A reconciliation of non-GAAP to GAAP financial measures is
included at the end of this release.
“Our success in 2022 reflects the value of guidance that our
sales force brings to middle-income families and the important role
they play in encouraging clients to take action,” said Glenn
Williams, Chief Executive Officer. “For three consecutive years,
Primerica has issued more than $100 billion in term life insurance
face amount. And while inflation and market volatility created
headwinds, our representatives successfully helped their clients
invest $10 billion in 2022 toward their future financial
goals.”
Term Life operating results during the fourth quarter reflected
a significant reduction in COVID-related death claims
year-over-year and continued normalization of policy persistency.
Claims were favorable to historical trends in the fourth quarter
and rising interest rates positively impacted benefit reserves when
the Company locked in its assumptions for new business during the
period as further described below. Economic uncertainty continued
to pressure equity markets, which adversely impacted sales and
client asset values in the Investment and Savings Products (“ISP”)
segment. Senior health results improved year-over-year as the
Company continued to navigate the evolving marketplace.
Comparing results for the year ended December 31, 2022 to the
year ended December 31, 2021, income before income taxes of $493.7
million declined 3%, while adjusted operating income before income
taxes of $567.0 million declined 6%. Term Life pre-tax operating
income grew 8% year-over-year, in line with 8% growth in adjusted
direct premiums as the impact of the pandemic on the life insurance
business faded. ISP pre-tax operating income declined 13%
year-over-year driven by the impact of equity market volatility on
product sales and client asset values. Higher losses in the Senior
Health segment, lower mortgage sales due to rising interest rates
and the cost of holding an additional sales force leadership event
in 2022 also contributed to the year-over-year decline in operating
income.
Fourth Quarter Distribution & Segment Results
Distribution Results
Q4 2022
Q4 2021
% Change
Life-Licensed Sales Force
135,208
129,515
4
%
Recruits
77,025
73,572
5
%
New Life-Licensed Representatives
11,117
9,296
20
%
Life Insurance Policies Issued
72,544
75,203
(4
)%
Life Productivity (1)
0.18
0.19
*
ISP Product Sales ($ billions)
$
2.09
$
3.02
(31
)%
Average Client Asset Values ($
billions)
$
83.26
$
94.81
(12
)%
Senior Health Submitted Policies (2)
23,060
39,142
(41
)%
Senior Health Approved Policies (3)
20,705
32,047
(35
)%
Closed U.S. Mortgage Volume ($ million
brokered)
$
78.9
$
330.8
(76
)%
___________________
(1)
Life productivity equals policies issued
divided by the average number of life insurance licensed
representatives per month
(2)
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
(3)
Represents an estimate of submitted
policies approved by health insurance carriers during the indicated
period. Not all approved policies will go in force
* Not calculated
Segment Results
Q4 2022
Q4 2021
% Change
($ in thousands)
Adjusted Operating Revenues:
Term Life Insurance
$
430,160
$
408,672
5
%
Investment and Savings Products
198,280
247,076
(20
)%
Senior Health (1)
27,853
37,504
(26
)%
Corporate and Other Distributed Products
(1)
28,210
29,746
(5
)%
Total adjusted operating revenues
(1)
$
684,503
$
722,998
(5
)%
Adjusted Operating Income (Loss) before
income taxes:
Term Life Insurance
$
125,321
$
102,019
23
%
Investment and Savings Products
57,417
70,699
(19
)%
Senior Health (1)
4,285
369
NM
Corporate and Other Distributed Products
(1)
(21,913
)
(22,345
)
(2
)%
Total adjusted operating income before
income taxes (1)
$
165,110
$
150,742
10
%
___________________
(1)
See the Non-GAAP Financial Measures section and the Adjusted
Operating Results reconciliation tables at the end of this release
for additional information.
Life Insurance Licensed Sales Force
The Company continued to capitalize on the attractiveness and
flexibility of its entrepreneurial business opportunity, ending
2022 with a record 135,208 independent life-licensed
representatives, a 4.4% increase compared to December 31, 2021.
Growth in the sales force was supported by strong recruiting over
the last 12 months, including 77,025 individuals who joined
Primerica during the fourth quarter of 2022. Licensing momentum
continued with 11,117 new life-licensed representatives during the
fourth quarter of 2022, a 20% increase compared to the prior year
period.
Term Life Insurance
The Company issued 72,544 new term life insurance policies
during the fourth quarter, decreasing 4% compared to the prior year
period, while issued term life face amount was nearly flat
year-over-year. The year-over-year decline in sales volume was due
to a slow start in October as the sales force anticipated and
prepared for the Company’s introduction of new life insurance
products. Following a successful product launch, momentum started
to build again in November and December. We also believe an
increased cost-of-living impacted sales to some degree.
Productivity remained in its historical range at 0.18 policies per
life-licensed representative per month versus 0.19 in the prior
year period.
Fourth quarter revenues of $430.2 million increased 5%
year-over-year, driven by 6% growth in adjusted direct premiums,
while pre-tax income of $125.3 million increased 23% due primarily
to a reduction in benefits and claims. The benefits and claims
ratio, which is typically lower in the fourth quarter due to
seasonally weaker persistency, was 56.6%. The ratio reflects claims
that were $3 million favorable to historical trends in the current
period compared to excess claims of $19 million driven largely by
COVID in the prior year period. In addition, the Company’s annual
process to lock in new business assumptions under current GAAP,
which historically takes place during the fourth quarter, resulted
in a reserve reduction of $4 million primarily due to higher
interest rates. Finally, the administrative reprocessing of certain
reinsurance transactions lowered benefits and claims by $2
million.
Persistency has largely normalized in the aggregate, however,
lapse rates remained elevated for policies written at the height of
the pandemic, while lapses for policies issued prior to the
pandemic were generally lower. The DAC amortization ratio of 16.6%
for the quarter reflects seasonally weaker persistency and is
largely in line with fourth quarter ratios prior to the pandemic.
The fourth quarter operating margin was 21.5% compared to 18.6% in
the prior year period.
Investment and Savings Products
Total ISP sales during the quarter were $2.1 billion, or 31%
lower than the prior year period. Heightened market volatility and
economic uncertainty continued to impact investor confidence,
pressuring sales and client asset values. However, the Company
recorded net inflows of $649 million during the quarter with
redemption levels remaining just below 2% of the beginning of
quarter assets, which continues to reflect clients’ commitment to
their long-term investment objectives. Client asset values ended
the year at $83.9 billion, down 14% compared to December 31,
2021.
Revenues of $198.3 million declined 20% and pre-tax income of
$57.4 million declined 19% year-over-year due to 35% lower
sales-based revenue generating sales and 12% lower average client
asset values. Sales-based and asset-based commission revenues and
expenses generally declined in line with their related drivers.
Senior Health
Results reflected seasonally heightened activity associated with
the Medicare annual enrollment period (“AEP”) with nearly 21,000
policies approved during the fourth quarter. As intended, the
Company approved fewer policies than the approximately 32,000
approved in the prior year period as it continues to evaluate
emerging profitability dynamics in the sector. The lifetime value
of commissions per approved policy (“LTV”) was $888 and the
contract acquisition costs per approved policy (“CAC”) was $722,
for an LTV/CAC ratio of 1.2x for the period.
Revenues of $27.9 million declined year-over-year as a result of
a lower number of approved policies. The Company recognized a
positive revenue adjustment of $3.8 million this quarter, largely
to reflect the final first year commission collections on 2022
effective policies that was higher than assumed throughout the
year. The adjustment increased first year commission revenues to
match the actual cash received during the year since these
commissions are no longer subject to chargeback. The Company made
progress in efficiently procuring and utilizing leads as reflected
in a 21% year-over-year improvement of CAC. Adjusted operating
income before taxes was $4.3 million in the fourth quarter of 2022
versus adjusted operating income attributable to Primerica of $0.4
million in the prior year period. The Company did not need to
provide any funding to the Senior Health segment during the
quarter.
Corporate and Other Distributed Products
During the fourth quarter, the segment recorded an adjusted
operating loss before income taxes of $21.9 million compared to a
$22.3 million loss in the prior year period. The segment had strong
growth in allocated net investment income as described further on a
consolidated basis below. Higher market interest rates continued to
adversely impact mortgage loan volume. Insurance and other
operating expenses increased as a result of general corporate
expenditures, including employee compensation and investments in
technology. Additionally, interest expense was lower
year-over-year, reflecting an overlap of interest obligation during
the issuance of new senior notes in 2021.
Invested Asset Portfolio
Consolidated net investment income increased $8.5 million
compared to the prior year period, reflecting higher yields on new
investments and growth in the size of the invested asset portfolio.
About half of the increase was allocated to the Term Life segment
as the in-force business continues to grow with the remainder
recorded in Corporate and Other Distributed Products.
The invested asset portfolio ended the quarter with an
unrealized loss of $306 million, compared to an unrealized loss of
$321 million at September 30, 2022 reflecting relatively unchanged
Treasury rates, but tighter credit spreads during the period. The
Company does not believe the unrealized loss is due to significant
credit concerns but is instead due to increasing interest rates and
intends to hold these investments until maturity.
Taxes
The effective tax rate during the fourth quarter was 21.3%
compared to 47.9% in the fourth quarter of 2021. The 2021 period
included a goodwill impairment charge for which the Company does
not receive a tax benefit. Excluding the goodwill impairment
charge, the effective tax rate in the fourth quarter of 2021 was
22.3%. The effective tax rate in the fourth quarter of 2022
includes a current period tax benefit from revaluing the Canadian
deferred tax asset to reflect an incremental Canadian federal tax
enacted in December. The incremental Canadian tax is imposed on
taxable income in excess of $100 million for banks and life
insurance companies.
Capital
During the quarter, the Company repurchased $32.0 million of
common stock, for a total of $356.3 million in 2022, resulting in
completion of its prior authorization. As announced in November
2022, the Company received a new authorization for a $375 million
share repurchase program in 2023. The Board of Directors has also
approved a dividend of $0.65 per share, payable on March 14, 2023,
to stockholders of record on February 21, 2023.
The Company has a strong balance sheet, including invested
assets and cash at the holding company of $307 million. Primerica
Life Insurance Company's statutory risk-based capital (RBC) ratio
was estimated to be about 475% as of December 31, 2022.
Non-GAAP Financial Measures
In addition to reporting financial results in accordance with
U.S. generally accepted accounting principles (“GAAP”), the Company
presents certain non-GAAP financial measures. Specifically, the
Company presents adjusted direct premiums, other ceded premiums,
adjusted operating revenues, adjusted operating income before
income taxes, adjusted net operating income, adjusted stockholders’
equity and diluted adjusted operating earnings per share. Adjusted
direct premiums and other ceded premiums are net of amounts ceded
under coinsurance transactions that were executed concurrent with
our initial public offering (the “IPO coinsurance transactions”)
for all periods presented. We exclude amounts ceded under the IPO
coinsurance transactions in measuring adjusted direct premiums and
other ceded premiums to present meaningful comparisons of the
actual premiums economically maintained by the Company. Amounts
ceded under the IPO coinsurance transactions will continue to
decline over time as policies terminate within this block of
business. Adjusted operating revenues, adjusted operating income
before income taxes, adjusted net operating income and diluted
adjusted operating earnings per share exclude the impact of
investment gains (losses) and fair value mark-to-market (“MTM”)
investment adjustments, including credit impairments, for all
periods presented. We exclude investment gains (losses), including
credit impairments, and MTM investment adjustments in measuring
these non-GAAP financial measures to eliminate period-over-period
fluctuations that may obscure comparisons of operating results due
to items such as the timing of recognizing gains (losses) and
market pricing variations prior to an invested asset’s maturity or
sale that are not directly associated with the Company’s insurance
operations. Adjusted operating income before taxes, adjusted net
operating income, and diluted adjusted operating earnings per share
also exclude the loss on the extinguishment of debt,
transaction-related expenses/recoveries associated with the
purchase of e-TeleQuote Insurance, Inc. and subsidiaries
(collectively, “e-TeleQuote”), adjustments to share-based
compensation expense for shares exchanged in the business
combination, and non-cash goodwill impairment charges. We exclude
the loss on the extinguishment of debt, e-TeleQuote
transaction-related expenses/recoveries and non-cash goodwill
impairment charges as these are non-recurring items that will cause
incomparability between period-over-period results. We exclude
adjustments to share-based compensation expense for shares
exchanged in the business combination to eliminate
period-over-period fluctuations that may obscure comparisons of
operating results primarily due to the volatility of changes in the
fair value of shares which were acquired for no additional
consideration. Adjusted operating income before income taxes and
adjusted net operating income exclude income attributable to the
noncontrolling interest to present only the income that is
attributable to stockholders of the Company. Adjusted stockholders’
equity excludes the impact of net unrealized investment gains
(losses) recorded in accumulated other comprehensive income (loss)
for all periods presented. We exclude unrealized investment gains
(losses) in measuring adjusted stockholders’ equity as unrealized
gains (losses) from the Company’s available-for-sale securities are
largely caused by market movements in interest rates and credit
spreads that do not necessarily correlate with the cash flows we
will ultimately realize when an available-for-sale security matures
or is sold.
Our definitions of these non-GAAP financial measures may differ
from the definitions of similar measures used by other companies.
Management uses these non-GAAP financial measures in making
financial, operating and planning decisions and in evaluating the
Company’s performance. Furthermore, management believes that these
non-GAAP financial measures may provide users with additional
meaningful comparisons between current results and results of prior
periods as they are expected to be reflective of the core ongoing
business. These measures have limitations and investors should not
consider them in isolation or as a substitute for analysis of the
Company’s results as reported under GAAP. Reconciliations of GAAP
to non-GAAP financial measures are attached to this release.
Earnings Webcast Information
Primerica will hold a webcast on Friday, February 24, 2023 at
10:00 a.m. Eastern, to discuss the quarter’s results. To access the
webcast, go to https://investors.primerica.com at least 15 minutes
prior to the event to register, download and install any necessary
software. A replay of the call will be available for approximately
30 days. This release and a detailed financial supplement will be
posted on Primerica’s website.
Forward-Looking Statements
Except for historical information contained in this press
release, the statements in this release are forward-looking and
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements contain known and unknown risks and uncertainties that
may cause our actual results in future periods to differ materially
from anticipated or projected results. Those risks and
uncertainties include, among others, our failure to continue to
attract and license new recruits, retain sales representatives or
license or maintain the licensing of sales representatives; new
laws or regulations that could apply to our distribution model,
which could require us to modify our distribution structure;
changes to the independent contractor status of sales
representatives; our or sales representatives’ violation of or
non-compliance with laws and regulations; any failure to protect
the confidentiality of client information; differences between our
actual experience and our expectations regarding mortality or
persistency as reflected in the pricing for our insurance policies;
changes in federal, state and provincial legislation or regulation
that affects our insurance, investment product and mortgage
businesses; our failure to meet regulatory capital ratios or other
minimum capital and surplus requirements; a significant downgrade
by a ratings organization; the failure of our reinsurers or reserve
financing counterparties to perform their obligations; the failure
of our investment products to remain competitive with other
investment options or the loss of our relationship with one or more
of the companies whose investment products we provide; litigation
and regulatory investigations and actions concerning us or sales
representatives; heightened standards of conduct or more stringent
licensing requirements for sales representatives; inadequate
policies and procedures regarding suitability review of client
transactions; revocation of our subsidiary’s status as a non-bank
custodian; economic down cycles that impact our business, financial
condition and results of operations; major public health pandemics,
epidemics or outbreaks or other catastrophic events; the failure of
our information technology systems, breach of our information
security, failure of our business continuity plan or the loss of
the Internet; the effects of credit deterioration and interest rate
fluctuations on our invested asset portfolio and other assets;
incorrectly valuing our investments; changes in accounting
standards may impact how we record and report our financial
condition and results of operations; the inability of our
subsidiaries to pay dividends or make distributions; litigation and
regulatory investigations and actions; a significant change in the
competitive environment in which we operate; the loss of key
personnel or sales force leaders; any acquisition or investment in
businesses that do not perform as we expect or are difficult to
integrate; due to our very limited history with e-TeleQuote, we
cannot be certain that its business will be successful or that we
will successfully address any risks not known to us that may become
material; a failure by e-TeleQuote to comply with the requirements
of the United States government’s Centers for Medicare and Medicaid
Services and those of its carrier partners; legislative or
regulatory changes to Medicare Advantage or changes to the
implementing guidance by the Centers for Medicare and Medicaid
Services; e-TeleQuote’s inability to acquire or generate leads on
commercially viable terms, convert leads to sales or if customer
policy retention is lower than assumed; e-TeleQuote’s inability to
enroll individuals during the Medicare annual election period; the
loss of a key carrier, or the modification of commission rates or
underwriting practices with a key carrier partner could adversely
affect e-TeleQuote’s business; cyber-attack(s), security breaches
or if e-TeleQuote is otherwise unable to safeguard the security and
privacy of confidential data, including personal health
information; and fluctuations in the market price of our common
stock or Canadian currency exchange rates. These and other risks
and uncertainties affecting us are more fully described in our
filings with the Securities and Exchange Commission, which are
available in the "Investor Relations" section of our website at
https://investors.primerica.com. Primerica assumes no duty to
update its forward-looking statements as of any future date.
About Primerica, Inc.
Primerica, Inc., headquartered in Duluth, GA, is a leading
provider of financial services to middle-income households in North
America. Independent licensed representatives educate Primerica
clients about how to better prepare for a more secure financial
future by assessing their needs and providing appropriate solutions
through term life insurance, which we underwrite, and mutual funds,
annuities and other financial products, which we distribute
primarily on behalf of third parties. We insured over 5.7 million
lives and had over 2.7 million client investment accounts on
December 31, 2021. Primerica, through its insurance company
subsidiaries, was the #2 issuer of Term Life insurance coverage in
the United States and Canada in 2021. Primerica stock is included
in the S&P MidCap 400 and the Russell 1000 stock indices and is
traded on The New York Stock Exchange under the symbol “PRI”.
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated Balance
Sheets
(Unaudited)
December 31, 2022
December 31, 2021
(In thousands)
Assets
Investments:
Fixed-maturity securities
available-for-sale, at fair value
$
2,495,456
$
2,702,567
Fixed-maturity security held-to-maturity,
at amortized cost
1,444,920
1,379,100
Short-term investments available-for-sale,
at fair value
69,406
85,243
Equity securities, at fair value
35,404
42,551
Trading securities, at fair value
3,698
24,355
Policy loans and other invested assets
48,713
30,612
Total investments
4,097,597
4,264,428
Cash and cash equivalents
489,240
392,501
Accrued investment income
20,885
18,702
Reinsurance recoverables
4,015,909
4,268,419
Deferred policy acquisition costs, net
3,081,886
2,943,782
Renewal commissions receivable
200,043
231,751
Agent balances, due premiums and other
receivables
254,276
257,675
Goodwill
127,707
179,154
Intangible assets
185,525
195,825
Income taxes
101,333
81,799
Operating lease right-of-use assets
40,500
47,942
Other assets
428,259
441,253
Separate account assets
2,305,717
2,799,992
Total assets
$
15,348,877
$
16,123,223
Liabilities and Stockholders'
Equity
Liabilities:
Future policy benefits
$
7,390,800
$
7,138,649
Unearned and advance premiums
15,422
16,437
Policy claims and other benefits
payable
538,250
585,382
Other policyholders' funds
483,769
501,823
Notes payable - short term
-
15,000
Notes payable - long term
592,905
592,102
Surplus note
1,444,469
1,378,585
Income taxes
128,333
241,311
Operating lease liabilities
45,995
53,920
Other liabilities
580,780
615,710
Payable under securities lending
100,938
94,529
Separate account liabilities
2,305,717
2,799,992
Total liabilities
13,627,378
14,033,440
Temporary Stockholders' Equity
Redeemable noncontrolling interests in
consolidated entities
-
7,271
Permanent Stockholders' equity
Equity attributable to Primerica,
Inc.:
Common stock
368
394
Paid-in capital
-
5,224
Retained earnings
1,973,403
2,004,506
Accumulated other comprehensive income
(loss), net of income tax
(252,272
)
72,388
Total permanent stockholders' equity
1,721,499
2,082,512
Total liabilities and temporary and
permanent stockholders' equity
$
15,348,877
$
16,123,223
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Income
(Unaudited)
Three months ended December
31,
2022
2021
(In thousands, except
per-share amounts)
Revenues:
Direct premiums
$
812,481
$
794,344
Ceded premiums
(406,088
)
(405,147
)
Net premiums
406,393
389,197
Commissions and fees
226,720
288,285
Net investment income
28,530
20,001
Investment gains (losses)
2,845
1,995
Other, net
22,451
24,616
Total revenues
686,939
724,094
Benefits and expenses:
Benefits and claims
154,130
187,192
Amortization of deferred policy
acquisition costs
93,776
68,575
Sales commissions
103,162
139,842
Insurance expenses
58,883
53,359
Insurance commissions
7,280
8,542
Contract acquisition costs
14,952
29,264
Interest expense
6,768
8,804
Goodwill impairment loss
-
76,000
Loss on extinguishment of debt
-
8,927
Other operating expenses
80,442
77,291
Total benefits and expenses
519,393
657,796
Income before income taxes
167,546
66,298
Income taxes
35,706
31,788
Net income
$
131,840
$
34,510
Net income attributable to noncontrolling
interests
-
(360
)
Net income attributable to Primerica,
Inc.
$
131,840
$
34,870
Earnings per share attributable to
common stockholders:
Basic earnings per share
$
3.55
$
0.88
Diluted earnings per share
$
3.54
$
0.87
Weighted-average shares used in
computing earnings per share:
Basic
36,974
39,568
Diluted
37,081
39,691
PRIMERICA, INC. AND
SUBSIDIARIES
Condensed Consolidated
Statements of Income
(Unaudited)
Year ended December
31,
2022
2021
(In thousands, except
per-share amounts)
Revenues:
Direct premiums
$
3,230,120
$
3,122,148
Ceded premiums
(1,629,892
)
(1,616,264
)
Net premiums
1,600,228
1,505,884
Commissions and fees
944,676
1,042,813
Net investment income
93,065
80,588
Investment gains (losses)
(995
)
5,872
Other, net
83,159
74,575
Total revenues
2,720,133
2,709,732
Benefits and expenses:
Benefits and claims
665,749
722,753
Amortization of deferred policy
acquisition costs
356,143
251,179
Sales commissions
462,764
522,308
Insurance expenses
235,405
202,605
Insurance commissions
30,261
34,532
Contract acquisition costs
68,431
52,788
Interest expense
27,237
30,618
Goodwill impairment loss
60,000
76,000
Loss on extinguishment of debt
-
8,927
Other operating expenses
320,394
296,851
Total benefits and expenses
2,226,384
2,198,561
Income before income taxes
493,749
511,171
Income taxes
125,775
139,191
Net income
$
367,974
$
371,980
Net income (loss) attributable to
noncontrolling interests
(5,038
)
(1,377
)
Net income attributable to Primerica,
Inc.
$
373,012
$
373,357
Earnings per share attributable to
common stockholders:
Basic earnings per share
$
9.77
$
9.41
Diluted earnings per share
$
9.74
$
9.38
Weighted-average shares used in
computing earnings per share:
Basic
37,997
39,530
Diluted
38,106
39,652
PRIMERICA, INC. AND
SUBSIDIARIES
Consolidated Adjusted
Operating Results Reconciliation
(Unaudited – in thousands,
except per share amounts)
Three months ended December
31,
2022
2021
% Change
Total revenues
$
686,939
$
724,094
(5
)%
Less: Investment gains (losses)
2,845
1,995
Less: 10% deposit asset MTM included in
NII
(409
)
(899
)
Adjusted operating revenues
$
684,503
$
722,998
(5
)%
Income before income taxes
$
167,546
$
66,298
153
%
Less: Investment gains (losses)
2,845
1,995
Less: 10% deposit asset MTM included in
NII
(409
)
(899
)
Less: e-TeleQuote transaction-related
expenses
-
(812
)
Less: Equity comp for awards exchanged
during acquisition
-
739
Less: Noncontrolling interest
-
(540
)
Less: Goodwill impairment
-
(76,000
)
Less: Loss on extinguishment of debt
-
(8,927
)
Adjusted operating income before income
taxes
$
165,110
$
150,742
10
%
Net income
$
131,840
$
34,510
282
%
Less: Investment gains (losses)
2,845
1,995
Less: 10% deposit asset MTM included in
NII
(409
)
(899
)
Less: e-TeleQuote transaction-related
expenses
-
(812
)
Less: Equity comp for awards exchanged
during acquisition
-
739
Less: Noncontrolling interest
-
(540
)
Less: Goodwill impairment
-
(76,000
)
Less: Loss on extinguishment of debt
-
(8,927
)
Less: Tax impact of preceding items
(520
)
1,945
Adjusted net operating income
$
129,924
$
117,009
11
%
Diluted earnings per share (1)
$
3.54
$
0.87
307
%
Less: Net after-tax impact of operating
adjustments
0.05
(2.07
)
Diluted adjusted operating earnings per
share (1)
$
3.49
$
2.94
19
%
___________________
(1)
Percentage change in earnings per share is
calculated prior to rounding per share amounts.
PRIMERICA, INC. AND
SUBSIDIARIES
Consolidated Adjusted
Operating Results Reconciliation
(Unaudited – in thousands,
except per share amounts)
Year ended December
31,
2022
2021
% Change
Total revenues
$
2,720,133
$
2,709,732
0
%
Less: Investment gains (losses)
(995
)
5,872
Less: 10% deposit asset MTM included in
NII
(3,830
)
(2,502
)
Adjusted operating revenues
$
2,724,958
$
2,706,362
1
%
Income before income taxes
$
493,749
$
511,171
(3
)%
Less: Investment gains (losses)
(995
)
5,872
Less: 10% deposit asset MTM included in
NII
(3,830
)
(2,502
)
Less: e-TeleQuote transaction-related
expenses
1,992
(12,948
)
Less: Equity comp for awards exchanged
during acquisition
(3,584
)
1,744
Less: Noncontrolling interest
(6,797
)
(2,005
)
Less: Goodwill impairment
(60,000
)
(76,000
)
Less: Loss on extinguishment of debt
-
(8,927
)
Adjusted operating income before income
taxes
$
566,963
$
605,937
(6
)%
Net income
$
367,974
$
371,980
(1
)%
Less: Investment gains (losses)
(995
)
5,872
Less: 10% deposit asset MTM included in
NII
(3,830
)
(2,502
)
Less: e-TeleQuote transaction-related
expenses
1,992
(12,948
)
Less: Equity comp for awards exchanged
during acquisition
(3,584
)
1,744
Less: Noncontrolling interest
(6,797
)
(2,005
)
Less: Goodwill impairment
(60,000
)
(76,000
)
Less: Loss on extinguishment of debt
-
(8,927
)
Less: Tax impact of preceding items
3,303
4,548
Adjusted net operating income
$
437,885
$
462,197
(5
)%
Diluted earnings per share (1)
$
9.74
$
9.38
4
%
Less: Net after-tax impact of operating
adjustments
(1.69
)
(2.23
)
Diluted adjusted operating earnings per
share (1)
$
11.44
$
11.61
(1
)%
___________________
(1)
Percentage change in earnings per share is
calculated prior to rounding per share amounts.
TERM LIFE INSURANCE
SEGMENT
Adjusted Premiums
Reconciliation
(Unaudited – in
thousands)
Three months ended December
31,
2022
2021
% Change
Direct premiums
$
807,796
$
789,325
2
%
Less: Premiums ceded to IPO coinsurers
224,240
239,828
Adjusted direct premiums
583,556
549,497
6
%
Ceded premiums
(404,174
)
(403,184
)
Less: Premiums ceded to IPO coinsurers
(224,240
)
(239,828
)
Other ceded premiums
(179,934
)
(163,356
)
Net premiums
$
403,622
$
386,141
5
%
SENIOR HEALTH SEGMENT
Adjusted Operating Results
Reconciliation
(Unaudited – in
thousands)
Three months ended December
31,
2022
2021
% Change
Income/(loss) before income taxes
$
4,285
$
(76,560
)
NM
Less: e-TeleQuote transaction-related
costs
-
(389
)
Less: Noncontrolling interest
-
(540
)
Less: Goodwill impairment
-
(76,000
)
Adjusted operating income before taxes
$
4,285
$
369
NM
CORPORATE AND OTHER
DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results
Reconciliation
(Unaudited – in
thousands)
Three months ended December
31,
2022
2021
% Change
Total revenues
$
30,646
$
30,842
(1
)%
Less: Investment gains (losses)
2,845
1,995
Less: 10% deposit asset MTM included in
NII
(409
)
(899
)
Adjusted operating revenues
$
28,210
$
29,746
(5
)%
Loss before income taxes
$
(19,477
)
$
(29,860
)
(35
)%
Less: Investment gains (losses)
2,845
1,995
Less: 10% deposit asset MTM included in
NII
(409
)
(899
)
Less: e-TeleQuote transaction-related
expenses
-
(423
)
Less: Equity comp for awards exchanged
during acquisition
-
739
Less: Loss on extinguishment of debt
-
(8,927
)
Adjusted operating loss before income
taxes
$
(21,913
)
$
(22,345
)
(2
)%
PRIMERICA, INC. AND
SUBSIDIARIES
Adjusted Stockholders' Equity
Reconciliation
(Unaudited – in
thousands)
December 31, 2022
December 31, 2021
% Change
Stockholders' equity (1)
$
1,721,499
$
2,082,512
(17
)%
Less: Unrealized net investment gains
(losses) recorded in stockholders' equity, net of income tax
(240,869
)
63,777
Adjusted stockholders' equity (1)
$
1,962,368
$
2,018,735
(3
)%
___________________
(1)
Reflects the Company’s permanent stockholders’ equity and does not
include temporary stockholders’ equity.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230223005894/en/
Investor Contact: Nicole Russell 470-564-6663 Email:
Nicole.Russell@primerica.com
Media Contact: Susan Chana 404-229-8302 Email:
Susan.Chana@Primerica.com
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