Primerica, Inc. · NYSE:PRI
Primerica — Q3 2022 Earnings Presentation
11 slides from Primerica's earnings presentation, Sep 30, 2022
Slide 1: Earnings Results
Earnings Results Quarter Ended September 30, 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 ● Goodwill impairment charge of $60 million GAAP Financial Results ($1.59 per diluted share) is a result of an ($ in millions, except per-share amounts) Q3 2022 Q3 2021 % Change increase in current equity market risk premiums Revenues $673.3 $693.2 (3%) and interest rates, which
Slide 4: Distribution Highlights
Distribution Highlights ● Biennial convention had the desired effect of Sales Force generating excitement with representatives — Announced significant licensing fee discounts Q3 2022 Q3 2021 % Change for the month of July Distribution Recruits 127,788 91,884 39% ● Recruited a total of 128,000 indivi
Slide 5: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance ● Middle-income households are starting to feel Production pressured by higher costs of living ($ in billions) Q3 2022 Q3 2021 % Change ● Issued 71,000 new life insurance policies during Issued life insurance policies 71,104 75,914 (6%) Term Life the quarter
Slide 6: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products 6 ● Prolonged equity market volatility erodes Production investor confidence; however, clients ($ in billions) Q3 2022 Q3 2021 % Change remain focused on their long-term goals Total product sales $2.16 $2.79 (23%) ISP — Net client inflows of $714
Slide 7: Operating Results: Term Life Segment
Operating Results Term Life Segment ● Operating revenues increased 7% driven by ($ in millions) Q3 2022 Q3 2021 % Change 7% growth in Adjusted Direct Premiums (ADP) Direct premiums $804.6 $779.5 3% — ADP growth expected to be 8% for full-year 2022 Premium ceded to IPO coinsurers (1) ($226.9) ($241.4
Slide 8: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment ($ in millions, except as noted) Q3 2022 Q3 2021 % Change ● Investment and Savings Products segment results remain challenged by economic Sales-based revenues $68.0 $95.2 (29%) headwinds and equity market volatility Asset-based revenues $107.5
Slide 9: Senior Health Business
Senior Health Business ($ in millions, except as noted) Q3 2022 Q3 2021 % Change ● Executing on our deliberate plan to slow growth as we gain experience in evolving Commissions and fees $14.6 $21.6 (32%) senior health sector Operating revenues $17.2 $22.9 (25%) ● Net cash tax benefit from operating
Slide 10: Insurance & Other Operating Expense Highlights
Insurance & Other Operating Expense Highlights INSURANCE & OTHER OPERATING EXPENSES ● Insurance and other operating expense levels normalized in the third quarter following two ($ in millions) Cons * Life ISP Sr Health Corp consecutive quarters of elevated expenses Q3 2021 Consolidated Insurance & O
Slide 11: Invested Assets Portfolio
Invested Assets Portfolio Key Portfolio Attributes ● Higher interest rates and changes in credit (based on amortized cost (except for market value); spreads led to unrealized loss of $321 million Q3 2022 excludes cash, period end) — We do not currently see significant credit issues in Fixed income /