A.M. Best has reiterated the Long-Term Issuer Credit Ratings (ICR) of ‘a-’ of Primerica, Inc. (PRI - Free Report) . Concurrently, the rating giant retained theSuperior Financial Strength Rating of A+ and Long-Term ICR of ‘aa-’ of subsidiaries of Primerica — Primerica Life Insurance Company and its affiliates, National Benefit Life Insurance Company and Primerica Life Insurance Company of Canada. All these together are refereed as Primerica Life.
The rating agency also affirmed the long-term credit rating of ‘a’ on 4.75% senior unsecured notes of Primerica worth $375 million.The outlook of ratings remains stable.
The ratings affirmations of Primerica Life reflect its sturdy position as an ace term life insurance in the United States, owing to its distribution affiliate — Primerica Financial Services, Inc.
Solid net income and margins, benefiting from favorable mortality experience, are in tune with the rating agency’s expectation. A.M. Best also estimates that Primerica Life’s risk-adjusted capitalization will remain stable going forward.
However, weighing on the positives are its narrow business profile and capital management strategy. Nonetheless, the rating agency expects Primerica Life to maintain its earnings stream and capital growth
Rating affirmations or upgrades from credit rating agencies play an important role in retaining investor confidence as well as in maintaining credit worthiness of a stock. We believe that such ratings will help Primericatoretain investors confidence and write more businesses going forward.
Zacks Rank and Share Price Movement
Primerica currently carries a Zacks Rank #3 (Hold). Shares of Primerica have underperformed the industry year to date. While Primerica’s shares have gained 34.38%, the industry has registered an increase of 37.21%. Improved sales and strong financial position are expected to drive the stock higher in the future.
Stocks to Consider
Some better-ranked stocks from the insurance industry are Health Insurance Innovations, Inc (HIIQ - Free Report) , Markel Corporation (MKL - Free Report) and Kemper Corporation (KMPR - Free Report) . All three stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Health Insurance Innovations provides healthy and family insurance services in the United States. The company delivered positive surprises in the last four quarters, with an average beat of 87.49%.
Markel Corporation markets and underwrites specialty insurance products in the United States and internationally. The company delivered positive surprises two of the last four quarters, with an average beat of 21.06%.
Kemper Corporation provides property & casualty, and life & health insurance services in the United States. The company delivered positive surprises in the last four quarters, with an average beat of 57.53%.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>