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Primerica, Inc. (PRI - Free Report) delivered third-quarter 2021 operating income of $2.98 per share, which missed the Zacks Consensus Estimate by 0.3%. The bottom line improved 7.2%.
The company witnessed continued strong momentum in investment and savings product sales, with client asset values remaining at record levels.
Operating revenues grew 22% year over year to $692 million on higher contributions from Investment and Savings Products, and Term Life Insurance segments. Revenues beat the Zacks Consensus Estimate by 3.1%.
Term Life Insurance revenues increased 12% to $401.5 million year over year, driven by 13% growth in adjusted direct premiums.
Investment and Savings Products revenues rose 32% to $233.3 million. Corporate and Other Distributed Products revenues rose 7% to $34.7 million. Senior Health generated $22.9 million in revenues in the reported quarter.
Life Insurance policies issued in the quarter declined 24%. Investment and Savings Products sales jumped 52% to $2.8 billion in the third quarter.
Total benefits and expenses of $546.1 million were up 29.4% year over year due to higher benefits and claims, sales commissions, insurance expenses and other operating expenses.
Adjusted operating income before taxes increased 8% year over year as Term Life Insurance operating income rose 2% and Investment and Savings Products income improved 35%.
Financial Update
Cash and cash equivalents were $325.6 million as of Sep 30, 2021, down 40.5% from the level on Dec 31, 2020.
Total investments were $4.1 billion, up 5.4% from the figure as of Dec 31, 2020.
Debts were $514.7 million, up 37.5% from the 2020-end level.
Stockholders’ equity totaled $2.1 billion, up 14.3% from the level on Dec 31, 2020.
Primerica Life Insurance Company’s statutory risk-based capital ratio was about 420% as of Sep 30, 2021.
Return on equity was 21.8% in the third quarter.
Dividend Update
During the third quarter, the company approved a dividend of 47 cents per share to be paid out on Dec 14, 2021 to its shareholders of record as of Nov 22.
Of the insurance industry players that have reported third-quarter results, the earnings of Athene beat the Zacks Consensus Estimate while that of Lincoln National (LNC - Free Report) and Voya Financial (VOYA - Free Report) missed the same.
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Primerica's (PRI) Q3 Earnings Miss, Revenues Beat Estimates
Primerica, Inc. (PRI - Free Report) delivered third-quarter 2021 operating income of $2.98 per share, which missed the Zacks Consensus Estimate by 0.3%. The bottom line improved 7.2%.
The company witnessed continued strong momentum in investment and savings product sales, with client asset values remaining at record levels.
Primerica, Inc. Price, Consensus and EPS Surprise
Primerica, Inc. price-consensus-eps-surprise-chart | Primerica, Inc. Quote
Operational Update
Operating revenues grew 22% year over year to $692 million on higher contributions from Investment and Savings Products, and Term Life Insurance segments. Revenues beat the Zacks Consensus Estimate by 3.1%.
Term Life Insurance revenues increased 12% to $401.5 million year over year, driven by 13% growth in adjusted direct premiums.
Investment and Savings Products revenues rose 32% to $233.3 million. Corporate and Other Distributed Products revenues rose 7% to $34.7 million. Senior Health generated $22.9 million in revenues in the reported quarter.
Life Insurance policies issued in the quarter declined 24%. Investment and Savings Products sales jumped 52% to $2.8 billion in the third quarter.
Total benefits and expenses of $546.1 million were up 29.4% year over year due to higher benefits and claims, sales commissions, insurance expenses and other operating expenses.
Adjusted operating income before taxes increased 8% year over year as Term Life Insurance operating income rose 2% and Investment and Savings Products income improved 35%.
Financial Update
Cash and cash equivalents were $325.6 million as of Sep 30, 2021, down 40.5% from the level on Dec 31, 2020.
Total investments were $4.1 billion, up 5.4% from the figure as of Dec 31, 2020.
Debts were $514.7 million, up 37.5% from the 2020-end level.
Stockholders’ equity totaled $2.1 billion, up 14.3% from the level on Dec 31, 2020.
Primerica Life Insurance Company’s statutory risk-based capital ratio was about 420% as of Sep 30, 2021.
Return on equity was 21.8% in the third quarter.
Dividend Update
During the third quarter, the company approved a dividend of 47 cents per share to be paid out on Dec 14, 2021 to its shareholders of record as of Nov 22.
Zacks Rank
Primerica currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Of the insurance industry players that have reported third-quarter results, the earnings of Athene beat the Zacks Consensus Estimate while that of Lincoln National (LNC - Free Report) and Voya Financial (VOYA - Free Report) missed the same.