Primerica, Inc. · NYSE:PRI
Primerica — Q4 2020 Earnings Presentation
12 slides from Primerica's earnings presentation, Feb 10, 2021
Slide 1: Earnings Results
Earnings Results Quarter ended December 31, 2020 1
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) Q4 2020 Q4 2019 % Change ● Strong financial results year-over-year in 4Q: Revenues $598.3 $532.0 12% — 12% growth in adjusted operating Net income $100.1 $93.6 7% revenues Stockholders’ equity $1,835.9 $1,652.5 11%
Slide 4: Distribution Highlights
Distribution Highlights Sales Force ● New recruits increased 33% year-over-year ($ in billions) Q4 2020 Q4 2019 % Change Distribution ● New life-licensed reps increased 9% to a Recruits 80,599 60,466 33% total of 12,119, year-over-year New life licensed representatives 12,119 11,073 9% (1) Life insu
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance Production ($ in billions) Q4 2020 Q4 2019 % Change ● Policies issued increased 22% year-over-year, Issued life insurance policies 87,307 71,469 22% reflecting the middle-markets’ focus on Term Life Issued life face amount $28.4 $23.7 20% protecting their fi
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ($ in billions) Q4 2020 Q4 2019 % Change ● Record $82 billion client asset values at Investment & savings product sales $2.07 $1.98 4% December 31, 2020, an increase of 16% ISP year-over-year Investment & savings products client asset
Slide 7: Operating Results: Term Life Segment
Operating Results Term Life Segment Q4 2020 versus Q4 2019 ($ in millions) Q4 2020 Q4 2019 % Change ● 15% increase in adjusted direct premiums Direct premiums $745.6 $691.5 8% (ADP) aided by higher sales and favorable Premium ceded to IPO coinsurers (1) ($253.0) ($264.8) 4% persistency Adjusted dire
Slide 8: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment Q4 2020 versus Q4 2019 ($ in millions, except as noted) Q4 2020 Q4 2019 % Change ● Sales-based revenues remained largely Sales-based revenues $75.3 $75.4 (0.1%) unchanged, decreasing less than 1% Asset-based revenues $93.7 $84.2 11% — Impacted
Slide 9: Operating Results: Corporate and Other Distributed Products Segment
Operating Results Corporate and Other Distributed Products Segment ● Operating revenues were $32.4 million in the fourth quarter versus $29.3 million in the prior year period — U.S. mortgage distribution business added $3.7 million in revenues — Net investment income declined $2.2 million as more in
Slide 10: Insurance & Other Operating Expenses
Insurance & Other Operating Expenses ● Operating expenses for the quarter were $113 million, ($ in millions) Cons * Life ISP Corp 6% higher than Q4 2019, driven by: Q4 2019 Expenses * 106.7 44.4 36.2 26.1 Employee related expenses 3.4 1.5 0.6 1.3 – Employee-related expenses Technology related expens
Slide 11: Invested Assets Portfolio
Invested Assets Portfolio Key Portfolio Attributes ● Net unrealized investment gain was $163 (based on amortized cost (except for market value); Q4 2020 million at year-end excludes cash, period end) Fixed income / other mix 99% / 1% Fixed income average book yield 3.44% ● Maintained an average cred
Slide 12: Taxes, Capital and Liquidity
Taxes, Capital and Liquidity ● The effective income tax rate for the fourth quarter was 24.0%, consistent with full year rate ● Primerica Life Insurance Company’s (PLIC) statutory risk-based capital ratio (RBC) was estimated to be approximately 400%, with holding company liquidity of $350 million as