Primerica, Inc. · NYSE:PRI
Primerica — Q3 2020 Earnings Presentation
11 slides from Primerica's earnings presentation, Nov 6, 2020
Slide 1: Earnings Results
Earnings Results Quarter ended September 30, 2020
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation may contain forward-looking statements and information. Additional information on factors that could cause results to differ materially from those projected in this presentation is available in ou
Slide 3: Financial Highlights
Financial Highlights GAAP Financial Results ($ in millions, except per-share amounts) Q3 2020 Q3 2019 % Change ● Solid financial results Revenues $568.5 $520.7 9% — 9% growth in adjusted operating Net income $112.1 $96.2 17% revenues Stockholders’ equity $1,720.4 $1,607.8 7% — 16% growth in adjusted
Slide 4: Distribution Highlights
Distribution Highlights Sales Force ● New recruits increased 41% year-over-year ($ in billions) Q3 2020 Q3 2019 % Change Distribution — Discounted licensing fee ended August 1 Recruits 101,861 72,345 41% New life licensed representatives 13,138 12,682 4% — Year-over-year increase in each of the Life
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance Production ($ in billions) Q3 2020 Q3 2019 % Change ● Policies issued increased 36% year-over-year, Issued life insurance policies 100,199 73,434 36% reflecting the middle-markets’ awareness of Term Life Issued life face amount $30.1 $24.1 25% the need to pr
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ($ in billions) Q3 2020 Q3 2019 % Change ● Sales of $1.8 billion declined 1% year-over- Investment & savings product sales $1.84 $1.86 (1%) year ISP Investment & savings products client — Growth in managed accounts and asset values (en
Slide 7: Operating Results: Term Life Segment
Operating Results Term Life Segment Q3 2020 versus Q3 2019 ($ in millions) Q3 2020 Q3 2019 % Change ● Adjusted direct premiums and total Direct premiums $730.3 $685.5 7% operating revenues grew 14% Premium ceded to IPO coinsurers (1) $254.9 $267.9 5% ● Operating income before taxes grew Adjusted dir
Slide 8: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment Q3 2020 versus Q3 2019 ($ in millions, except as noted) Q3 2020 Q3 2019 % Change ● Sales-based revenues declined 5% in-line Sales-based revenues $65.6 $69.0 (5%) with revenue-generating sales Asset-based revenues $86.7 $81.0 7% Account-based re
Slide 9: Insurance & Other Operating Expenses
Insurance & Other Operating Expenses ● Operating expenses of $105.5 million were ($ in millions) Cons * Life ISP Corp $5.8 million higher than prior year Q3 2019 Expenses * 99.7 43.2 34.5 22.0 – Employee-related costs impacted by Technology related expenses 2.6 0.7 0.5 1.4 annual benefits true-up Em
Slide 10: Invested Assets Portfolio
Invested Assets Portfolio Key Portfolio Attributes ● Lower yields were offset by growth in the size (based on amortized cost (except for market value); Q3 2020 of the portfolio and income on called excludes cash, period end) Fixed income / other mix 99% / 1% securities Fixed income average book yiel
Slide 11: Taxes, Capital and Liquidity
Taxes, Capital and Liquidity ● The third quarter effective income tax rate was 23.5%, consistent with full year rate ● Primerica Life Insurance Company’s (PLIC) statutory risk-based capital ratio (RBC) was estimated to be around 425% ● Holding company liquidity of $251.1 million as of September 30,