Primerica, Inc. · NYSE:PRI
Primerica — Q1 2022 Earnings Presentation
13 slides from Primerica's earnings presentation, May 2022
Slide 1: Earnings Results
Earnings Results Quarter Ended March 31, 2022
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. Information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year en
Slide 3: Financial Highlights
Financial Highlights GAAP Financial Results ● Diluted adjusted operating EPS of $2.11: ($ in millions, except per-share amounts) Q1 2022 Q1 2021 % Change Revenues $691.2 $637.7 8% Net income attributable to Primerica, Inc. $81.4 $97.9 (17%) — Term Life continues to see adjusted direct Stockholders’
Slide 4: Distribution Highlights
Distribution Highlights ● Year-over-year comparisons reflect Sales Force normalizing environment versus Q1 2022 Q1 2021 % Change pandemic-driven activity Distribution Recruits 84,707 94,633 (10%) ● Building momentum with strong New life licensed representatives 9,983 10,833 (8%) results versus pre-p
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance ● Issued 71,000 new life insurance policies Production — Compares favorably to 2019 pre-pandemic ($ in billions) Q1 2022 Q1 2021 % Change period Issued life insurance policies 71,324 82,667 (14%) Term Life ● Productivity at 0.18 policies per life Face amount
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ● Solid results including: ($ in billions) Q1 2022 Q1 2021 % Change — Sales of $3.1 billion, a 7% increase year- Total product sales $3.07 $2.85 7% over-year ISP Client asset values, end of period $93.7 $85.9 9% — Average client asset
Slide 7: Senior Health Business Areas of Focus
Senior Health Business Areas of Focus Lead sourcing and routing Agent recruiting and strategy improvements productivity Building Primerica lead Member retention generation 7
Slide 8: Operating Results: Term Life Segment
Operating Results Term Life Segment Q1 2022 versus Q1 2021 ($ in millions) % Change Q1 2022 Q1 2021 ● Operating revenues increased 10% Direct premiums $793.3 $756.5 5% while operating income before Premium ceded to IPO coinsurers (1) ($234.6) ($249.9) 6% income taxes increased 4% Adjusted direct pre
Slide 9: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment Q1 2022 versus Q1 2021 ($ in millions, except as noted) Q1 2022 Q1 2021 % Change Sales-based revenues $103.2 $98.1 5% ● Total operating revenues increased 8% Asset-based revenues $113.1 $101.2 12% while operating income before income Account-ba
Slide 10: Senior Health Business
Senior Health Business ● January 1st annual renewal cycle for ($ in thousands) Q1 2022 policies issued in prior periods Commissions and fees $1,278 experienced a higher than expected level of churn Operating revenues $5,831 – Negative tail adjustment of $19 million Contract acquisition costs $20,649
Slide 11: Insurance & Operating Expense Highlights
Insurance & Operating Expense Highlights INSURANCE & OPERATING EXPENSES ● Operating expenses of $145 million were ($ in millions) Cons * Life ISP Corp $23 million or 19% higher than prior year: Q1 2021 Expenses * 121.7 47.4 37.8 36.6 —$8 million from senior health Meeting related expenses 5.6 4.8 1.
Slide 12: Invested Assets Portfolio
Invested Assets Portfolio Key Portfolio Attributes ● Higher interest rates led to unrealized (based on amortized cost (except for market value); Q1 2022 excludes cash, period end) loss of $84 million versus $81 million Fixed income / other mix 99% / 1% unrealized gain in December 2021 Fixed income a
Slide 13: Taxes, Capital and Liquidity
Taxes, Capital and Liquidity ● The effective income tax rate for the quarter remained relatively unchanged at 23.5% ● Holding company liquidity of $260 million as of March 31, 2022 ● Primerica Life Insurance Company’s (PLIC) statutory risk-based capital ratio (RBC) was estimated to be approximately