Primerica, Inc. · NYSE:PRI
Primerica — Q2 2022 Earnings Presentation
12 slides from Primerica's earnings presentation, August 2022
Slide 1: Earnings Results
Earnings Results Quarter Ended June 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 ● Diluted adjusted operating EPS of $2.86 GAAP Financial Results ($ in millions, except per-share amounts) Q2 2022 Q2 2021 % Change — Term Life segment continued to grow, providing a dependable source of capital Revenues $668.7 $654.7 2% Net income attributable to Primerica, Inc
Slide 4: Production Highlights: Term Life Insurance
Production Highlights Term Life Insurance ● Issued 77,000 new life insurance policies Production — Expect second half 2022 sales to increase 5% ($ in billions) Q2 2022 Q2 2021 % Change Issued life insurance policies 76,946 90,071 (15%) Term Life Face amount issued $27.7 $30.0 (8%) ● Productivity at
Slide 5: Production Highlights: Investment and Savings Products
Production Highlights Investment and Savings Products Production ● Results impacted by market volatility ($ in billions) Q2 2022 Q2 2021 % Change — Sales of $2.7 billion declined 11% year- Total product sales $2.69 $3.04 (12%) over-year ISP Client asset values, end of period $82.29 $91.74 (10%) — Ne
Slide 6: Senior Health Business
Senior Health Business ● Remain committed to drive turn-around at e-TeleQuote — Manage sales volume — Focus on per-unit economics to reach sustainable ratio of revenues to acquisition costs ● Referrals from Primerica representatives to e-TeleQuote licensed agents have outperformed traditional leads
Slide 7: Distribution Highlights
Distribution Highlights ● Strong recruiting versus historical Sales Force average, reflecting attractiveness of Q2 2022 Q2 2021 % Change building a Primerica business Distribution Recruits 70,215 89,285 (21%) — Recruiting incentives heavily used in New life licensed representatives 11,529 10,112 14%
Slide 8: Operating Results: Term Life Segment
Operating Results Term Life Segment Q2 2022 versus Q2 2021 ($ in millions) % Change Q2 2022 Q2 2021 ● Operating revenues increased 7% while Direct premiums $803.5 $774.5 4% operating income before income taxes increased 3% Premium ceded to IPO coinsurers (1) ($231.8) ($246.9) 6% — Adjusted direct pr
Slide 9: Operating Results: Investment & Savings Products Segment
Operating Results Investment & Savings Products Segment Q2 2022 versus Q2 2021 ($ in millions, except as noted) Q2 2022 Q2 2021 % Change Sales-based revenues $88.7 $104.7 (15%) ● Investment and Savings Products segment Asset-based revenues $108.1 $108.5 (<1%) results are highly correlated to equity
Slide 10: Senior Health Business
Senior Health Business ($ in thousands) Q2 2022 ● $5.4 million negative tail adjustment reflects refinements for policies sold Commissions and fees $9,343 during most recent AEP and OEP Operating revenues $11,814 Contract acquisition costs $19,384 ● Deliberate efforts to improve LTVs and reduce cost
Slide 11: Insurance & Operating Expense Highlights
Insurance & Operating Expense Highlights ● Operating expenses of $139 million were INSURANCE & OPERATING EXPENSES $23% higher than prior year: ($ in millions) Cons * Life ISP Corp — $8.5 million from senior health segment Q2 2021 Insurance & Other — $8.0 million from in-person sales force Operating
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); Q2 2022 loss of $223 million versus $84 million excludes cash, period end) Fixed income / other mix 97% / 3% at the end of March Fixed income average book