Form 8-K Primerica, Inc. For: Feb 09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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DATE OF REPORT (Date of earliest event reported):
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February 9, 2015
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PRIMERICA, INC.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware
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001-34680
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27-1204330
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(State or Other Jurisdiction of
Incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification Number)
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1 Primerica Parkway
Duluth, Georgia 30099
(Address of Principal Executive Offices)
(770) 381-1000
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On February 9, 2015, Primerica, Inc. (the “Company”) announced its results of operations for the quarter and year ended December 31, 2014. A copy of the press release is attached hereto as Exhibit 99.1.
The information provided pursuant to this Item 2.02, including Exhibit 99.1 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except to the extent expressly set forth by specific reference in any such filings.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company presents certain non-GAAP financial measures. Specifically, the Company presents adjusted direct premiums, other ceded premiums, operating revenues, operating income before income taxes, net operating income, adjusted stockholders’ equity and diluted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded to affiliates of Citigroup Inc. under coinsurance transactions that were executed concurrent with our initial public offering (“IPO”) for all periods presented. Operating revenues, operating income before income taxes, net operating income and diluted operating earnings per share exclude the impact of realized investment gains and losses for all periods presented. Operating income before income taxes, net operating income, and diluted operating earnings per share also exclude (1) the expense in 2013 associated with our IPO-related equity awards, (2) the impact of charges recorded in 2013 for the settlement of claims made by certain Florida Retirement System (FRS) plan participants and (3) the compensation expense recorded in 2014 associated with the CEO transition agreements discussed in our Current Report on Form 8-K dated January 2, 2015. Adjusted stockholders’ equity excludes the impact of net unrealized gains and losses on invested assets for all periods presented.
We exclude these items because they are considered unusual and not indicative of our ongoing operations. Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP.
Reconciliations of non-GAAP to GAAP financial measures are included as attachments to the press release which has been posted in the “Investor Relations” section of our website at http://investors.primerica.com.
2
Item 7.01 Regulation FD Disclosure.
On February 9, 2015, the Company posted to the “Investor Relations” section of its website certain supplemental financial information relating to the quarter ended December 31, 2014. A copy of the supplemental financial information is attached hereto as Exhibit 99.2.
The information provided pursuant to this Item 7.01, including Exhibit 99.2 in Item 9.01, is “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of such section, and shall not be incorporated by reference in any filing made by the Company under the Exchange Act or the Securities Act, except to the extent expressly set forth by specific reference in any such filings.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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99.1
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Press Release dated February 9, 2015 – Primerica Reports Fourth Quarter 2014 Results
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99.2
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Primerica, Inc. Supplemental Financial Information – Fourth Quarter 2014
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3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Date: February 9, 2015
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PRIMERICA, INC.
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/s/ Alison S. Rand
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Alison S. Rand
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Executive Vice President and Chief Financial Officer
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4
EXHIBIT INDEX
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Exhibit No.
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Description
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99.1
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Press Release dated February 9, 2015 – Primerica Reports Fourth Quarter 2014 Results
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99.2
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Primerica, Inc. Supplemental Financial Information – Fourth Quarter 2014
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5
Exhibit 99.1
PRIMERICA REPORTS FOURTH QUARTER 2014 RESULTS
Diluted EPS of $0.84 and diluted operating EPS of $0.91
14.3% net income return on stockholders’ equity and 16.4% net operating income return on adjusted stockholders’ equity (ROAE)
14% increase in Investment and Savings Products (ISP) sales in the fourth quarter led to record ISP sales of $5.68 billion in 2014
8% growth in life insurance policies issued
Life insurance sales force increased to 98,358
Duluth, GA, February 9, 2015 – Primerica, Inc. (NYSE: PRI) announced today financial results for the quarter ended December 31, 2014. Total revenues were $345.4 million in the fourth quarter of 2014 and net income was $45.5 million, or $0.84 per diluted share. For the full year 2014, total revenues were $1.34 billion and net income was $181.4 million, or $3.29 per diluted share.
Net operating income, a non-GAAP financial measure, in 2014 excludes the impact of expenses recognized in the fourth quarter of 2014 related to the Co-CEO transition agreements described in our Form 8-K dated January 2, 2015 as well as realized investment gains and losses. A reconciliation of non-GAAP to GAAP financial measures is included at the end of this release.
In the fourth quarter, operating revenues increased by 9% to $346.5 million and net operating income increased by 6% to $49.0 million compared with $317.3 million and $46.2 million, respectively, in the year ago period. Diluted net operating income per share increased 9% to $0.91 compared with fourth quarter 2013 and ROAE increased to 16.4%. Solid operating results in the fourth quarter were primarily driven by growth in Term Life net premiums and strong Investment and Savings Products sales and asset performance. Net investment income was flat versus the prior year period due to $3.0 million of income from called securities in the fourth quarter of 2014 which offset the impact of declining portfolio yields and capital deployment actions. Year-over-year insurance and other operating expenses generally increased with normal business growth and development.
1
Throughout 2014, growth in Term Life net premiums and ISP performance drove our strong results. Operating revenues and net operating income in 2014 grew 9% year-over-year to $1.34 billion and $182.8 million, respectively. Other notable items include modest growth in insurance and other operating expenses from business growth and increased employee incentive compensation, which mainly reflects the accelerated retirement vesting recognized in the third quarter of 2014. On a year-over-year basis, these items were partially offset by higher legal fees and expenses incurred in 2013. Net investment income continued to decline year-over-year primarily due to the lower portfolio yields and capital deployment throughout the year. The $147.9 million of common stock repurchases during the year, equating to 5.5% of our common stock outstanding as of December 31, 2013, helped drive a 14% increase in diluted operating EPS to $3.31 for the year and a 60 basis points increase in ROAE to 15.3% compared with 2013.
Rick Williams, Chairman of the Board and Co-Chief Executive Officer said, “We are proud of the momentum generated in the business in the fourth quarter and throughout 2014. Our full year 2014 results were marked by solid performance across segments including 11% growth in Term Life net premiums, 9% growth in ISP sales and an 8% increase in ending client asset values, while the size of the life insurance licensed sales force grew 3%. John Addison and I believe the positive 2014 results make this the perfect time for a leadership transition and are confident that Glenn Williams will take the company to the next level.”
Glenn Williams, who has been appointed Chief Executive Officer as of April 1, 2015, said, “I’m grateful for John and Rick’s leadership over the past 15 years and look forward to capitalizing on the positive momentum. I will work to build on their successful strategy by leveraging Primerica’s strengths to increase the size of the sales force, drive earnings growth and deploy capital to deliver long-term value for all of our stakeholders.”
2
Distribution Results
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●
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The size of our life-licensed sales force grew to 98,358 at December 31, 2014 from 95,566 at December 31, 2013 and 97,966 at September 30, 2014. In the fourth quarter, recruiting of new representatives increased 13% to 43,054 compared to the year ago quarter driven by improved incentive programs and messaging. New life insurance licenses of 8,510 were in line with the fourth quarter a year ago as new life insurance licenses typically lag recruiting. Sequentially, recruiting of new representatives declined from 49,055 and new life insurance licenses were down from 8,793 compared with the third quarter of 2014 reflecting seasonally lower activity in the fourth quarter. The percentage of license non-renewals and terminations in relation to the size of the sales force was slightly higher compared to the third quarter of 2014 and the fourth quarter of 2013.
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●
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Term life insurance policies issued in the fourth quarter increased 8% compared with the prior year quarter and increased 3% from the third quarter of 2014, partially driven by strong recruiting and sales force initiatives in the fourth quarter. Productivity in the fourth quarter of .19X policies per life licensed representative per month increased from .18X in the fourth quarter a year ago and remained consistent with the third quarter of 2014. The average annualized term premium per issued policy was consistent with the fourth quarter of 2013.
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●
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In the fourth quarter of 2014, Investment and Savings Products sales were $1.46 billion, up 14% compared with the prior year period, resulting in 2014 having the highest ever ISP sales in a single year of $5.68 billion. Expansion of our variable annuity products led to the fourth quarter being one of the largest variable annuity sales quarters in the history of the company. On a sequential basis, ISP sales increased 6% compared with the third quarter of 2014. Client asset values increased to an all-time high of $48.66 billion, up 8% at December 31, 2014 relative to a year ago, and increased 3% from the end of the third quarter, primarily reflecting market performance.
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Segment Results
Primerica operates in two primary business segments: Term Life Insurance and Investment and Savings Products, and has a third segment, Corporate and Other Distributed Products. Results for the segments are shown below.
3
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Actual
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Operating (1)
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|||||||||||||||||||||||
| Q4 2014 | Q4 2013(2) |
% Change
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Q4 2014 | Q4 2013(2) |
% Change
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($ in thousands)
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($ in thousands)
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Revenues:
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Term Life Insurance
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$ | 198,370 | $ | 180,147 | 10% | $ | 198,370 | $ | 180,147 | 10 | ||||||||||||||
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Investment and Savings Products
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131,383 | 120,333 | 9% | 131,383 | 120,333 | 9 | ||||||||||||||||||
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Corporate and Other Distributed Products
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15,632 | 17,742 | (12)% | 16,706 | 16,843 | (1)% | ||||||||||||||||||
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Total revenues
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$ | 345,385 | $ | 318,222 | 9% | $ | 346,459 | $ | 317,323 | 9% | ||||||||||||||
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Income (loss) from continuing
operations before income taxes:
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Term Life Insurance
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$ | 52,826 | $ | 50,042 | 6% | $ | 52,826 | $ | 50,042 | 6% | ||||||||||||||
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Investment and Savings Products
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39,039 | 19,810 | 97% | 39,039 | 35,361 | 10% | ||||||||||||||||||
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Corporate and Other Distributed Products
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(22,735 | ) | (13,708 | ) | 66% | (17,433 | ) | (14,607 | ) | 19% | ||||||||||||||
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Total income from continuing
operations before income taxes
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$ | 69,130 | $ | 56,144 | 23% | $ | 74,432 | $ | 70,796 | 5% | ||||||||||||||
| (1) |
See the Non-GAAP Financial Measures section and the segment Operating Results Reconciliations at the end of this release for additional information.
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| (2) |
The results of operations from our short-term statutory disability insurance business (DBL) prior to its disposal in Q1 2014 were reported in our Corporate and Other Distributed Products segment. As such, we have reclassified revenues, insurance expenses, and income before income taxes of $9,018, $1,485, and $822, respectively, in Q4 2013 from our Corporate and Other Distributed Products segment into discontinued operations.
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Term Life Insurance. In the fourth quarter of 2014, Term Life operating revenues increased 10% to $198.4 million and operating income before income taxes increased 6% to $52.8 million compared with the same period a year ago. An 11% increase in net premiums drove revenue growth over the prior year period. Allocated net investment income was positively impacted by income from called securities and growth in required assets, partially offset by lower yield on invested assets compared with the fourth quarter of 2013. While incurred claims returned to historical levels, benefits and claims increased at a faster rate than net premiums primarily reflecting improved persistency and revised reserve assumptions on certain supplemental policy benefits in the fourth quarter. DAC amortization grew faster than net premiums due to more commissions being deferred in recent years, partially offset by improved persistency. Results also reflect higher growth-related expenses year-over-year.
Sequentially, operating income before income taxes increased 15% versus the third quarter of 2014 reflecting continued growth in net premiums and higher net investment income due to income from called securities, partially offset by seasonally lower persistency and the revised reserves assumptions on certain supplemental policy benefits in the fourth quarter. Sequential results also benefitted from the return to the historical levels of incurred claims and the prior period recognition of accelerated compensation expense for equity awards with retirement vesting provisions.
Investment and Savings Products. In the fourth quarter, operating revenues increased 9% to $131.4 million and operating income before income taxes increased 10% to $39.0 million compared with the fourth quarter of 2013. Results were driven by 14% growth in ISP sales and 10% growth in average client asset values. Sales-based revenues and expenses grew in line with revenue generating sales. Year-over-year asset-based revenues increased 7%, slightly lagging growth in average client asset values, due to lower Canadian segregated funds sales and client asset values, which generate higher than average asset-based revenues. Asset-based commission expense growth of 15% outpaced asset-based revenue growth as Canadian segregated fund compensation expense is generally recognized over time as DAC amortization. Lower legal fees and expenses were offset by increases in general operating expenses year-over-year.
4
Sequentially, operating income before income taxes increased 6%, primarily reflecting a 6% increase in product sales, lower DAC amortization in the fourth quarter and the accelerated recognition of compensation expense for equity awards with retirement vesting provisions in the third quarter of 2014.
Corporate and Other Distributed Products. Operating revenues of $16.7 million were consistent year-over-year and operating losses before income taxes increased by $2.8 million compared with the fourth quarter of 2013. During the quarter, allocated net investment income declined primarily due to growth in Term Life required assets, lower yield on invested assets and capital deployment. The increase in other operating expenses in the fourth quarter was primarily related to a write-off of developed software as new sales force technology is phased in. In the fourth quarter of 2013, our New York subsidiary benefitted from lower claims experience on the non-term life insurance products.
Taxes
The effective income tax rate for the fourth quarter of 2014 of 34.2% was relatively consistent with the fourth quarter of 2013. Sequentially, the effective income tax rate decreased from 35.0% in the third quarter related to the recognition of certain tax benefits due to statute of limitations that expire each year in the fourth quarter.
Capital and Liquidity
Following a $167 million ordinary dividend payment by Primerica Life Insurance Company (PLIC) to Primerica, Inc. in the fourth quarter, PLIC’s statutory risk-based capital (RBC) ratio was estimated to be approximately 400% as of December 31, 2014.
5
The ordinary dividend payment facilitated the repurchase of $82.4 million or 1.6 million shares of Primerica common stock in the fourth quarter for a total of $147.9 million or 3.0 million shares repurchased in 2014.
Our Board of Directors has authorized a share repurchase program for 2015 under which we expect to repurchase up to $150 million of common stock. The share repurchases may be made from time to time through open market transactions, block trades and/or privately negotiated transactions and are subject to market conditions, as well as corporate, regulatory, and other considerations. This share repurchase program may be discontinued at any time by the Board of Directors and the Company has no obligation to repurchase any amount of its common stock under the program.
As of December 31, 2014, our investments and cash increased to $2.26 billion compared with $2.23 billion as of September 30, 2014, primarily due to the increase in the held-to-maturity asset held as part of a redundant reserve financing transaction. Our invested asset portfolio had a net unrealized gain of $101.3 million (net of unrealized losses of $13.3 million) at December 31, 2014, a decline from $111.9 million at September 30, 2014.
Non-GAAP Financial Measures
We report financial results in accordance with U.S. generally accepted accounting principles (GAAP). We also present adjusted direct premiums, other ceded premiums, operating revenues, operating income before income taxes, net operating income, adjusted stockholders’ equity, and diluted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded to affiliates of Citigroup Inc. under coinsurance transactions that were executed concurrent with our initial public offering (“IPO”) for all periods presented. Operating revenues, operating income before income taxes, net operating income, and diluted operating earnings per share exclude the impact of realized investment gains and losses for all periods presented. Operating income before income taxes, net operating income, and diluted operating earnings per share also exclude (1) the expense in 2013 associated with our IPO-related equity awards, (2) the impact of charges recorded in 2013 for the settlement of claims made by certain Florida Retirement System (FRS) plan participants and (3) the compensation expense recorded in 2014 associated with the CEO transition agreements discussed in our Current Report on Form 8-K dated January 2, 2015. Adjusted stockholders' equity excludes the impact of net unrealized gains and losses on invested assets for all periods presented. We exclude these items because they are considered unusual and not indicative of our ongoing operations. Our definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating our financial performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of our core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Reconciliations of non-GAAP to GAAP financial measures are attached to this release.
6
Earnings Webcast Information
Primerica will hold a webcast Tuesday, February 10, 2014 at 9:00 am ET, to discuss fourth quarter results. This release and a detailed financial supplement will be posted on Primerica’s website. Investors are encouraged to review these materials. To access the webcast go to http://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software.
A replay of the call will be available for approximately 30 days on Primerica’s website, http://investors.primerica.com.
Forward-Looking Statements
Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of our sales representatives; our or our sales representatives’ violation of or non-compliance with laws and regulations; incorrect assumptions used to price our insurance policies; the failure of our investment products to remain competitive with other investment options; our failure to meet RBC standards or other minimum capital and surplus requirements; a downgrade or potential downgrade in our insurance subsidiaries’ financial strength ratings or our senior debt ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; heightened standards of conduct or more stringent licensing requirements for our sales representatives; the inability of our subsidiaries to pay dividends or make distributions; the loss of key personnel; and general changes in economic and financial conditions, including the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the "Investor Relations" section of our website at http://investors.primerica.com. Primerica assumes no duty to update its forward-looking statements as of any future date.
7
About Primerica, Inc.
Primerica, Inc., headquartered in Duluth, GA, is a leading distributor of financial products to middle income households in North America. Primerica representatives educate their Main Street clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, which we underwrite, and mutual funds, annuities and other financial products, which we distribute primarily on behalf of third parties. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products. Primerica insured more than 4 million lives and had over 2 million client investment accounts at December 31, 2014. Primerica stock is included in the S&P MidCap 400 and the Russell 2000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.
Investor Contact:
Kathryn Kieser
470-564-7757
Email: [email protected]
Media Contact:
Keith Hancock
470-564-6328
Email: [email protected]
8
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PRIMERICA, INC. AND SUBSIDIARIES
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Condensed Balance Sheets
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December 31, 2014 (1)
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December 31, 2013
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(In thousands)
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Assets
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Investments:
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Fixed maturity securities available for sale, at fair value
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$
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1,759,120
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$
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1,755,712
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Fixed maturity securities held-to-maturity, at amortized cost
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220,000
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-
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Equity securities available for sale, at fair value
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53,390
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39,894
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Trading securities, at fair value
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7,711
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12,991
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Policy loans and other invested assets
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28,095
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|
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26,806
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Total investments
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2,068,316
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|
|
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1,835,403
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Cash and cash equivalents
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192,516
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|
|
|
149,189
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Accrued investment income
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|
|
17,401
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|
|
|
18,127
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Due from reinsurers
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|
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4,115,533
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|
|
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4,055,054
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Deferred policy acquisition costs
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|
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1,351,180
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|
|
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1,208,466
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Premiums and other receivables
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|
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181,660
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|
|
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175,785
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|
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Intangible assets
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|
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61,720
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|
|
|
68,863
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|
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Income taxes
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|
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36,082
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|
|
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32,450
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Other assets
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|
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273,403
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|
|
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282,784
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Separate account assets
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|
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2,440,303
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|
|
|
2,503,829
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Total assets
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$
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10,738,114
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|
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$
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10,329,950
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|
|
|
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Liabilities and Stockholders' Equity
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Liabilities:
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Future policy benefits
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|
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5,264,608
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|
|
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5,063,103
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|
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Unearned premiums
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|
|
912
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|
|
|
1,802
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|
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Policy claims and other benefits payable
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|
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264,832
|
|
|
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253,304
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|
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Other policyholders' funds
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|
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344,313
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|
|
|
337,977
|
|
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Notes payable
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|
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374,532
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|
|
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374,481
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|
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Surplus note
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|
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220,000
|
|
|
|
-
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|
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Income taxes
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|
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140,467
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|
|
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105,885
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Other liabilities
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|
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392,810
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|
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377,690
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Payable under securities lending
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50,211
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89,852
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Separate account liabilities
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2,440,303
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|
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2,503,829
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Total liabilities
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9,492,988
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|
|
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9,107,923
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Stockholders' equity:
|
|
|
|
|
|
|
|
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Common stock
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|
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522
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|
|
|
548
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Paid-in capital
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|
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353,337
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|
|
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472,633
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Retained earnings
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|
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795,740
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|
|
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640,840
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Accumulated other comprehensive income, net of income tax
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95,527
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|
|
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108,006
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Total stockholders' equity
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|
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1,245,126
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|
|
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1,222,027
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Total liabilities and stockholders' equity
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$
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10,738,114
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|
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$
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10,329,950
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(1) Unaudited
9
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PRIMERICA, INC. AND SUBSIDIARIES
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||||||||
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Condensed Statements of Income
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(Unaudited)
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||||||||
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Three months ended December 31,
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2014
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2013
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(In thousands, except per-share amounts)
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Revenues:
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Direct premiums
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$
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578,905
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|
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$
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568,848
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|
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Ceded premiums
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|
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(401,359
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)
|
|
|
(408,615
|
)
|
|
Net premiums
|
|
|
177,546
|
|
|
|
160,233
|
|
|
Commissions and fees
|
|
|
135,267
|
|
|
|
123,910
|
|
|
Net investment income
|
|
|
22,728
|
|
|
|
22,407
|
|
|
Realized investment gains (losses), including OTTI
|
|
|
(1,074
|
)
|
|
|
899
|
|
|
Other, net
|
|
|
10,918
|
|
|
|
10,773
|
|
|
Total revenues
|
|
|
345,385
|
|
|
|
318,222
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
Benefits and claims
|
|
|
82,578
|
|
|
|
70,246
|
|
|
Amortization of deferred policy acquisition costs
|
|
|
39,544
|
|
|
|
35,627
|
|
|
Sales commissions
|
|
|
68,790
|
|
|
|
61,164
|
|
|
Insurance expenses
|
|
|
27,263
|
|
|
|
26,855
|
|
|
Insurance commissions
|
|
|
3,343
|
|
|
|
4,241
|
|
|
Interest expense
|
|
|
8,700
|
|
|
|
8,704
|
|
|
Other operating expenses
|
|
|
46,037
|
|
|
|
55,241
|
|
|
Total benefits and expenses
|
|
|
276,255
|
|
|
|
262,078
|
|
|
Income from continuing operations before income taxes
|
|
|
69,130
|
|
|
|
56,144
|
|
|
Income taxes
|
|
|
23,664
|
|
|
|
19,477
|
|
|
Income from continuing operations
|
|
|
45,466
|
|
|
|
36,667
|
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
534
|
|
|
Net income
|
|
$
|
45,466
|
|
|
$
|
37,201
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.84
|
|
|
$
|
0.66
|
|
|
Discontinued operations
|
|
|
-
|
|
|
|
0.01
|
|
|
Basic earnings per share
|
|
$
|
0.84
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.84
|
|
|
$
|
0.66
|
|
|
Discontinued operations
|
|
|
-
|
|
|
|
0.01
|
|
|
Diluted earnings per share
|
|
$
|
0.84
|
|
|
$
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
53,421
|
|
|
|
55,081
|
|
|
Diluted
|
|
|
53,470
|
|
|
|
55,096
|
|
|
|
|
|
|
|
|
|
|
|
10
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||||
|
Condensed Statements of Income
|
||||||||
|
(Unaudited)
|
||||||||
|
|
Year ended December 31,
|
|||||||
|
|
2014
|
|
|
2013
|
|
|||
|
|
(In thousands, except per-share amounts)
|
|
||||||
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Direct premiums
|
|
$
|
2,301,332
|
|
|
$
|
2,265,191
|
|
|
Ceded premiums
|
|
|
(1,616,817
|
)
|
|
|
(1,644,158
|
)
|
|
Net premiums
|
|
|
684,515
|
|
|
|
621,033
|
|
|
Commissions and fees
|
|
|
527,166
|
|
|
|
471,808
|
|
|
Net investment income
|
|
|
86,473
|
|
|
|
88,752
|
|
|
Realized investment gains (losses), including OTTI
|
|
|
(261
|
)
|
|
|
6,246
|
|
|
Other, net
|
|
|
42,137
|
|
|
|
42,731
|
|
|
Total revenues
|
|
|
1,340,030
|
|
|
|
1,230,570
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits and expenses:
|
|
|
|
|
|
|
|
|
|
Benefits and claims
|
|
|
311,417
|
|
|
|
279,931
|
|
|
Amortization of deferred policy acquisition costs
|
|
|
144,378
|
|
|
|
129,183
|
|
|
Sales commissions
|
|
|
268,775
|
|
|
|
232,237
|
|
|
Insurance expenses
|
|
|
115,452
|
|
|
|
105,457
|
|
|
Insurance commissions
|
|
|
15,353
|
|
|
|
16,530
|
|
|
Interest expense
|
|
|
34,570
|
|
|
|
35,018
|
|
|
Other operating expenses
|
|
|
174,363
|
|
|
|
187,208
|
|
|
Total benefits and expenses
|
|
|
1,064,308
|
|
|
|
985,564
|
|
|
Income from continuing operations before income taxes
|
|
|
275,722
|
|
|
|
245,006
|
|
|
Income taxes
|
|
|
95,888
|
|
|
|
86,305
|
|
|
Income from continuing operations
|
|
|
179,834
|
|
|
|
158,701
|
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
|
1,578
|
|
|
|
4,024
|
|
|
Net income
|
|
$
|
181,412
|
|
|
$
|
162,725
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
3.26
|
|
|
$
|
2.80
|
|
|
Discontinued operations
|
|
|
0.03
|
|
|
|
0.07
|
|
|
Basic earnings per share
|
|
$
|
3.29
|
|
|
$
|
2.87
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
3.26
|
|
|
$
|
2.76
|
|
|
Discontinued operations
|
|
|
0.03
|
|
|
|
0.07
|
|
|
Diluted earnings per share
|
|
$
|
3.29
|
|
|
$
|
2.83
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in computing earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
54,567
|
|
|
|
55,834
|
|
|
Diluted
|
|
|
54,598
|
|
|
|
56,625
|
|
|
|
|
|
|
|
|
|
|
|
11
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||||||||
|
Consolidated Operating Results Reconciliation
|
||||||||||||
|
(Unaudited – in thousands, except per share amounts)
|
||||||||||||
|
|
Three months ended December 31,
|
|
|
|
|
|
||||||
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
||||
|
Operating revenues
|
|
$
|
346,459
|
|
|
$
|
317,323
|
|
|
|
9
|
%
|
|
Realized investment gains (losses), including OTTI
|
|
(1,074
|
)
|
|
|
899
|
|
|
|
|
|
|
|
Total revenues
|
|
$
|
345,385
|
|
|
$
|
318,222
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before income taxes
|
|
$
|
74,432
|
|
|
$
|
70,796
|
|
|
|
5
|
%
|
|
Realized investment gains (losses), including OTTI
|
|
(1,074
|
)
|
|
|
899
|
|
|
|
|
|
|
|
Other operating expense - FRS legal settlement
|
|
|
-
|
|
|
|
(15,551
|
)
|
|
|
|
|
|
Other operating expense - impact of Co-CEO transition agreements
|
|
|
(4,228
|
)
|
|
|
-
|
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$
|
69,130
|
|
|
$
|
56,144
|
|
|
|
23
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
|
|
$
|
48,953
|
|
|
$
|
46,235
|
|
|
|
6
|
%
|
|
Realized investment gains (losses), including OTTI
|
|
(1,074
|
)
|
|
|
899
|
|
|
|
|
|
|
|
Other operating expense - FRS legal settlement
|
|
|
-
|
|
|
|
(15,551
|
)
|
|
|
|
|
|
Other operating expense - impact of Co-CEO transition agreements
|
|
|
(4,228
|
)
|
|
|
-
|
|
|
|
|
|
|
Tax impact of reconciling items
|
|
|
1,815
|
|
|
|
5,084
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
45,466
|
|
|
|
36,667
|
|
|
|
24
|
%
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
|
-
|
|
|
|
534
|
|
|
|
|
|
|
Net income
|
|
$
|
45,466
|
|
|
$
|
37,201
|
|
|
|
22
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted operating earnings per share (1)
|
|
$
|
0.91
|
|
|
$
|
0.83
|
|
|
|
9
|
%
|
|
Net after-tax impact of operating adjustments and discontinued
operations
|
|
(0.07
|
)
|
|
|
(0.16
|
)
|
|
|
|
|
|
|
Diluted earnings per share (1)
|
|
$
|
0.84
|
|
|
$
|
0.67
|
|
|
|
26
|
%
|
|
|
Year ended December 31,
|
|
|
|
|
|
||||||
|
|
2014
|
|
|
2013
|
|
|
% Change
|
|
||||
|
Operating revenues
|
|
$
|
1,340,291
|
|
|
$
|
1,224,324
|
|
|
|
9
|
%
|
|
Realized investment gains (losses), including OTTI
|
|
(261
|
)
|
|
|
6,246
|
|
|
|
|
|
|
|
Total revenues
|
|
$
|
1,340,030
|
|
|
$
|
1,230,570
|
|
|
|
9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income before income taxes
|
|
$
|
280,211
|
|
|
$
|
257,683
|
|
|
|
9
|
%
|
|
Realized investment gains (losses), including OTTI
|
|
(261
|
)
|
|
|
6,246
|
|
|
|
|
|
|
|
Other operating expense - FRS legal settlement
|
|
|
-
|
|
|
|
(15,738
|
)
|
|
|
|
|
|
Other operating expense - impact of Co-CEO transition agreements
|
|
|
(4,228
|
)
|
|
|
-
|
|
|
|
|
|
|
Other operating expense - IPO equity awards
|
|
|
-
|
|
|
|
(3,185
|
)
|
|
|
|
|
|
Income from continuing operations before income taxes
|
|
$
|
275,722
|
|
|
$
|
245,006
|
|
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating income
|
|
$
|
182,793
|
|
|
$
|
166,997
|
|
|
|
9
|
%
|
|
Realized investment gains (losses), including OTTI
|
|
(261
|
)
|
|
|
6,246
|
|
|
|
|
|
|
|
Other operating expense - FRS legal settlement
|
|
|
-
|
|
|
|
(15,738
|
)
|
|
|
|
|
|
Other operating expense - impact of Co-CEO transition agreements
|
|
|
(4,228
|
)
|
|
|
-
|
|
|
|
|
|
|
Other operating expense - IPO equity awards
|
|
|
-
|
|
|
|
(3,185
|
)
|
|
|
|
|
|
Tax impact of reconciling items
|
|
|
1,530
|
|
|
|
4,381
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
179,834
|
|
|
|
158,701
|
|
|
|
13
|
%
|
|
Income (loss) from discontinued operations, net of income taxes
|
|
|
1,578
|
|
|
|
4,024
|
|
|
|
|
|
|
Net income
|
|
$
|
181,412
|
|
|
$
|
162,725
|
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted operating earnings per share (1)
|
|
$
|
3.31
|
|
|
$
|
2.90
|
|
|
|
14
|
%
|
|
Net after-tax impact of operating adjustments and discontinued
operations
|
|
(0.02
|
)
|
|
|
(0.07
|
)
|
|
|
|
|
|
|
Diluted earnings per share (1)
|
|
$
|
3.29
|
|
|
$
|
2.83
|
|
|
|
16
|
%
|
(1) Percentage change in earnings per share is calculated prior to rounding per share amounts.
12
|
TERM LIFE INSURANCE SEGMENT
|
||||||||
|
Adjusted Premiums Reconciliation
|
||||||||
|
(Unaudited – in thousands)
|
||||||||
|
|
Three months ended December 31,
|
|||||||
|
|
2014
|
|
|
2013
|
|
|||
|
Adjusted direct premiums
|
|
$
|
233,044
|
|
|
$
|
210,572
|
|
|
Premiums ceded to Citigroup
|
|
|
337,501
|
|
|
|
350,077
|
|
|
Direct premiums
|
|
$
|
570,545
|
|
|
$
|
560,649
|
|
|
|
|
|
|
|
|
|
|
|
|
Other ceded premiums
|
|
$
|
(60,977
|
)
|
|
$
|
(55,430
|
)
|
|
Premiums ceded to Citigroup
|
|
|
(337,501
|
)
|
|
|
(350,077
|
)
|
|
Ceded premiums
|
|
$
|
(398,478
|
)
|
|
$
|
(405,507
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net premiums
|
|
$
|
172,067
|
|
|
$
|
155,142
|
|
|
INVESTMENT AND SAVINGS PRODUCTS SEGMENT
|
||||||||
|
Operating Results Reconciliation
|
||||||||
|
(Unaudited – in thousands)
|
||||||||
|
|
Three months ended December 31,
|
|||||||
|
|
2014
|
|
|
2013
|
|
|||
|
Operating income before income taxes
|
|
$
|
39,039
|
|
|
$
|
35,361
|
|
|
Other operating expense - FRS legal settlement
|
|
|
-
|
|
|
|
(15,551
|
)
|
|
Income from continuing operations before income taxes
|
|
$
|
39,039
|
|
|
$
|
19,810
|
|
|
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
|
||||||||
|
Operating Results Reconciliation
|
||||||||
|
(Unaudited – in thousands)
|
||||||||
|
|
Three months ended December 31,
|
|||||||
|
|
2014
|
|
|
2013
|
|
|||
|
Operating revenues
|
|
$
|
16,706
|
|
|
$
|
16,843
|
|
|
Realized investment gains (losses), including OTTI
|
|
|
(1,074
|
)
|
|
|
899
|
|
|
Total revenues
|
|
$
|
15,632
|
|
|
$
|
17,742
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss before income taxes
|
|
$
|
(17,433
|
)
|
|
$
|
(14,607
|
)
|
|
Realized investment gains (losses), including OTTI
|
|
|
(1,074
|
)
|
|
|
899
|
|
|
Other operating expense - impact of Co-CEO transition agreements
|
|
|
(4,228
|
)
|
|
|
-
|
|
|
Loss from continuing operations before income taxes
|
|
$
|
(22,735
|
)
|
|
$
|
(13,708
|
)
|
13
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||
|
Adjusted Stockholders' Equity Reconciliation
|
||||||
|
(Unaudited – in thousands)
|
||||||
|
December 31, 2014
|
|
December 31, 2013
|
|
|||
|
Adjusted stockholders' equity
|
$
|
1,171,280
|
|
$
|
1,155,995
|
|
|
Unrealized net investment gains recorded in stockholders' equity, net of income tax
|
|
73,846
|
|
|
66,032
|
|
|
Stockholders' equity
|
$
|
1,245,126
|
|
$
|
1,222,027
|
|
14
Exhibit 99.2
Supplemental Financial Information
Fourth Quarter 2014
| Table of Contents |
PRIMERICA, INC.
Financial Supplement
|
|
Page
|
|
|
Preface, definition of Non-GAAP financial measures
|
3
|
|
Condensed balance sheets and reconciliation of balance sheet non-GAAP to GAAP financial measures
|
4
|
|
Financial results and other statistical data
|
5
|
|
Statements of income
|
6
|
|
Reconciliation of statement of income non-GAAP to GAAP financial measures
|
7
|
|
Segment operating results
|
8
|
|
Term Life Insurance segment - financial results, key statistics, and financial analysis
|
9-11
|
|
Investment and Savings Products segment - financial results, key statistics, and financial analysis
|
12
|
|
Investment portfolio
|
13-15
|
|
Five-year historical key statistics
|
16
|
This document may contain forward-looking statements and information. Additional information and factors that could cause actual results to differ materially from any forward-looking statements or information in this document is available in our Form 10-K for the year ended December 31, 2013.
2 of 16
| Preface |
PRIMERICA, INC.
Financial Supplement
|
FOURTH QUARTER 2014
This document is a financial supplement to our fourth quarter 2014 earnings release. It is designed to enable comprehensive analysis of our ongoing business using the same core metrics that our management utilizes in assessing our business and making strategic and operational decisions. Throughout this document we provide financial information that is derived from our U.S. GAAP financial statements and adjusted for three different purposes, as follows:
|
●
|
Operating adjustments exclude the expense associated with equity awards granted in connection with our initial public offering (“IPO”), the impact of realized investment gains and losses, the impact of entering into Co-CEOs transition agreements as described in our Form 8-K dated January 2, 2015, and the impact of certain charges related to claims made by certain Florida Retirement System (FRS) plan participants as described in our Form 8-K dated January 16, 2014 and subsequent filings.
|
|
●
|
Adjusted when used in describing stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets.
|
|
●
|
Citi reinsurance transaction adjustments relate to transactions in the first quarter of 2010, where we reinsured between 80% and 90% of our business that was in-force at year-end 2009 to various affiliates of Citigroup Inc. (“Citi”) that were executed concurrent with our IPO.
|
Management utilizes certain non-GAAP financial measures in managing the business and believes they present relevant and meaningful analytical metrics for evaluating the ongoing business. Reconciliations of non-GAAP to GAAP financial measures are included in this financial supplement.
Discontinued Operations
In January 2014, National Benefit Life Insurance Company, our New York insurance company, sold the assets and liabilities of its short-term statutory disability benefit insurance business ("DBL") to AmTrust North America, Inc., which assumed all liabilities for DBL insurance. The results of operations for DBL were previously reported in our Corporate and Other Distributed Products segment. As a result, beginning in the first quarter of 2014, the historical results of DBL have been eliminated from our Corporate and Other Distributed Products segment and are now reported in discontinued operations in Primerica’s consolidated statements of income for all periods presented.
|
Historical DBL results now reported in discontinued operations
|
||||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
|
FY 2011
|
FY 2012
|
FY 2013
|
FY 2014
|
Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||
|
Direct premiums
|
$ | 40,465 | $ | 36,943 | $ | 36,878 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
|
Benefits and claims
|
30,170 | 24,699 | 21,543 | — | — | — | — | — | ||||||||||||||||||||||||
|
Insurance commissions
|
6,405 | 5,831 | 5,941 | — | — | — | — | — | ||||||||||||||||||||||||
|
Insurance expenses
|
5,099 | 5,647 | 3,202 | — | — | — | — | — | ||||||||||||||||||||||||
|
Net gain on sale
|
— | — | — | 2,427 | 2,455 | — | (28 | ) | — | |||||||||||||||||||||||
|
Income before income taxes
|
(1,209 | ) | 766 | 6,192 | 2,427 | 2,455 | — | (28 | ) | — | ||||||||||||||||||||||
|
Net Income
|
$ | (783 | ) | $ | 497 | $ | 4,025 | $ | 1,578 | $ | 1,596 | $ | — | $ | (18 | ) | $ | — | ||||||||||||||
Certain items throughout this supplement may not add due to rounding and as such, may not agree to other public reporting of the respective item. Certain items throughout this supplement are noted as ‘na’ to indicate not applicable. Certain variances are noted as ‘nm’ to indicate not meaningful. Certain reclassifications have been made to prior-period amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.
3 of 18
| Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures |
PRIMERICA, INC.
Financial Supplement
|
|
(Dollars in thousands)
|
Dec 31,
2012
|
Mar 31,
2013
|
Jun 30,
2013
|
Sep 30,
2013
|
Dec 31,
2013
|
Mar 31,
2014
|
Jun 30,
2014
|
Sep 30,
2014
|
Dec 31,
2014
|
|||||||||||||||||||||||||||
|
Condensed Balance Sheets
|
||||||||||||||||||||||||||||||||||||
|
Assets:
|
||||||||||||||||||||||||||||||||||||
|
Investments and cash excluding securities held to maturity
|
$ | 2,068,752 | $ | 2,115,144 | $ | 1,876,077 | $ | 1,909,560 | $ | 1,984,592 | $ | 2,014,610 | $ | 2,042,834 | $ | 2,039,759 | $ | 2,040,832 | ||||||||||||||||||
|
Securities held to maturity
|
— | — | — | — | — | — | — | 189,830 | 220,000 | |||||||||||||||||||||||||||
|
Total investments and cash
|
2,068,752 | 2,115,144 | 1,876,077 | 1,909,560 | 1,984,592 | 2,014,610 | 2,042,834 | 2,229,589 | 2,260,832 | |||||||||||||||||||||||||||
|
Due from reinsurers
|
4,005,194 | 4,005,539 | 3,993,258 | 4,033,138 | 4,055,054 | 4,074,527 | 4,077,734 | 4,130,637 | 4,115,533 | |||||||||||||||||||||||||||
|
Deferred policy acquisition costs
|
1,066,422 | 1,098,124 | 1,133,542 | 1,179,143 | 1,208,466 | 1,242,983 | 1,293,974 | 1,321,415 | 1,351,180 | |||||||||||||||||||||||||||
|
Other assets
|
579,393 | 599,840 | 566,809 | 564,953 | 578,009 | 597,265 | 597,348 | 591,895 | 570,267 | |||||||||||||||||||||||||||
|
Separate account assets
|
2,618,115 | 2,614,669 | 2,435,740 | 2,512,886 | 2,503,829 | 2,458,739 | 2,581,659 | 2,469,118 | 2,440,303 | |||||||||||||||||||||||||||
|
Total assets
|
$ | 10,337,877 | $ | 10,433,316 | $ | 10,005,426 | $ | 10,199,680 | $ | 10,329,950 | $ | 10,388,124 | $ | 10,593,549 | $ | 10,742,654 | $ | 10,738,114 | ||||||||||||||||||
|
Liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Future policy benefits
|
$ | 4,850,488 | $ | 4,898,538 | $ | 4,943,743 | $ | 5,022,048 | $ | 5,063,103 | $ | 5,103,278 | $ | 5,180,013 | $ | 5,214,878 | $ | 5,264,608 | ||||||||||||||||||
|
Other policy liabilities
|
606,310 | 614,892 | 584,587 | 587,646 | 593,084 | 585,217 | 576,737 | 630,248 | 610,057 | |||||||||||||||||||||||||||
|
Income taxes
|
114,611 | 122,925 | 89,713 | 101,708 | 105,885 | 127,906 | 137,797 | 136,065 | 140,467 | |||||||||||||||||||||||||||
|
Other liabilities
|
358,578 | 366,669 | 344,649 | 329,566 | 377,689 | 375,864 | 346,535 | 365,900 | 392,810 | |||||||||||||||||||||||||||
|
Notes payable
|
374,433 | 374,445 | 374,457 | 374,469 | 374,481 | 374,494 | 374,506 | 374,519 | 374,532 | |||||||||||||||||||||||||||
|
Surplus note
|
— | — | — | — | — | — | — | 189,830 | 220,000 | |||||||||||||||||||||||||||
|
Payable under securities lending
|
139,927 | 133,325 | 86,272 | 75,852 | 89,852 | 109,094 | 93,569 | 67,614 | 50,211 | |||||||||||||||||||||||||||
|
Separate account liabilities
|
2,618,115 | 2,614,669 | 2,435,740 | 2,512,886 | 2,503,829 | 2,458,739 | 2,581,659 | 2,469,118 | 2,440,303 | |||||||||||||||||||||||||||
|
Total liabilities
|
9,062,461 | 9,125,463 | 8,859,162 | 9,004,174 | 9,107,923 | 9,134,591 | 9,290,818 | 9,448,172 | 9,492,988 | |||||||||||||||||||||||||||
|
Stockholders’ equity:
|
||||||||||||||||||||||||||||||||||||
|
Common stock ($0.01 par value) (1)
|
564 | 567 | 545 | 547 | 548 | 546 | 542 | 537 | 522 | |||||||||||||||||||||||||||
|
Paid-in capital
|
602,269 | 609,100 | 456,050 | 464,784 | 472,632 | 462,837 | 447,949 | 429,257 | 353,335 | |||||||||||||||||||||||||||
|
Retained earnings
|
503,173 | 535,609 | 572,714 | 609,778 | 640,840 | 679,183 | 721,788 | 756,738 | 795,741 | |||||||||||||||||||||||||||
|
Treasury stock
|
— | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
|
Accumulated other comprehensive income (loss), net:
|
||||||||||||||||||||||||||||||||||||
|
Net unrealized investment gains (losses) not other-than-temporarily impaired
|
114,958 | 112,263 | 74,845 | 72,773 | 67,378 | 78,911 | 92,049 | 78,130 | 74,307 | |||||||||||||||||||||||||||
|
Net unrealized investment losses other-than-temporarily impaired
|
(1,035 | ) | (1,045 | ) | (1,047 | ) | (1,047 | ) | (1,346 | ) | (1,346 | ) | (1,346 | ) | (461 | ) | (461 | ) | ||||||||||||||||||
|
Cumulative translation adjustment
|
55,488 | 51,358 | 43,158 | 48,672 | 41,975 | 33,404 | 41,749 | 30,282 | 21,682 | |||||||||||||||||||||||||||
|
Total stockholders’ equity
|
1,275,416 | 1,307,853 | 1,146,265 | 1,195,505 | 1,222,027 | 1,253,532 | 1,302,731 | 1,294,482 | 1,245,126 | |||||||||||||||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 10,337,877 | $ | 10,433,316 | $ | 10,005,426 | $ | 10,199,680 | $ | 10,329,950 | $ | 10,388,124 | $ | 10,593,549 | $ | 10,742,654 | $ | 10,738,114 | ||||||||||||||||||
|
Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
|
Adjusted stockholders' equity
|
$ | 1,161,494 | $ | 1,196,634 | $ | 1,072,467 | $ | 1,123,780 | $ | 1,155,996 | $ | 1,175,968 | $ | 1,212,028 | $ | 1,216,813 | $ | 1,171,280 | ||||||||||||||||||
|
Reconciling items:
|
||||||||||||||||||||||||||||||||||||
|
Net unrealized investment gains (losses) not other-than-temporarily impaired
|
114,958 | 112,263 | 74,845 | 72,773 | 67,378 | 78,911 | 92,049 | 78,130 | 74,307 | |||||||||||||||||||||||||||
|
Net unrealized investment losses other-than-temporarily impaired
|
(1,035 | ) | (1,045 | ) | (1,047 | ) | (1,047 | ) | (1,346 | ) | (1,346 | ) | (1,346 | ) | (461 | ) | (461 | ) | ||||||||||||||||||
|
Total reconciling items
|
113,923 | 111,219 | 73,797 | 71,726 | 66,032 | 77,564 | 90,703 | 77,669 | 73,846 | |||||||||||||||||||||||||||
|
Total stockholders’ equity
|
$ | 1,275,416 | $ | 1,307,853 | $ | 1,146,265 | $ | 1,195,505 | $ | 1,222,027 | $ | 1,253,532 | $ | 1,302,731 | $ | 1,294,482 | $ | 1,245,126 | ||||||||||||||||||
|
Adjusted Stockholders' Equity Rollforward
|
||||||||||||||||||||||||||||||||||||
|
Balance, beginning of period
|
$ | 1,218,939 | $ | 1,161,494 | $ | 1,196,634 | $ | 1,072,467 | $ | 1,123,780 | $ | 1,155,996 | $ | 1,175,968 | $ | 1,212,028 | $ | 1,216,813 | ||||||||||||||||||
|
Net Income
|
40,270 | 38,845 | 43,490 | 43,190 | 37,201 | 45,080 | 49,271 | 41,595 | 45,466 | |||||||||||||||||||||||||||
|
Shareholder dividends
|
(5,321 | ) | (6,409 | ) | (6,385 | ) | (6,126 | ) | (6,138 | ) | (6,738 | ) | (6,666 | ) | (6,646 | ) | (6,462 | ) | ||||||||||||||||||
|
Retirement of shares and warrants
|
(98,208 | ) | (3,077 | ) | (166,395 | ) | — | — | (19,187 | ) | (21,972 | ) | (30,694 | ) | (82,447 | ) | ||||||||||||||||||||
|
Net foreign currency translation adjustment
|
(2,746 | ) | (4,130 | ) | (8,200 | ) | 5,514 | (6,697 | ) | (8,571 | ) | 8,346 | (11,468 | ) | (8,600 | ) | ||||||||||||||||||||
|
Other, net
|
8,559 | 9,911 | 13,323 | 8,736 | 7,850 | 9,389 | 7,081 | 11,997 | 6,510 | |||||||||||||||||||||||||||
|
Balance, end of period
|
$ | 1,161,494 | $ | 1,196,634 | $ | 1,072,467 | $ | 1,123,780 | $ | 1,155,996 | $ | 1,175,968 | $ | 1,212,028 | $ | 1,216,813 | $ | 1,171,280 | ||||||||||||||||||
|
Deferred Policy Acquisition Costs Rollforward
|
||||||||||||||||||||||||||||||||||||
|
Balance, beginning of period
|
$ | 1,036,020 | $ | 1,066,422 | $ | 1,098,124 | $ | 1,133,542 | $ | 1,179,143 | $ | 1,208,466 | $ | 1,242,983 | $ | 1,293,974 | $ | 1,321,415 | ||||||||||||||||||
|
General expenses deferred
|
6,869 | 6,631 | 8,669 | 7,399 | 7,396 | 7,273 | 8,136 | 7,147 | 8,171 | |||||||||||||||||||||||||||
|
Commission costs deferred
|
60,349 | 60,048 | 63,835 | 65,535 | 63,828 | 69,559 | 68,674 | 66,602 | 67,980 | |||||||||||||||||||||||||||
|
Amortization of deferred policy acquisition costs
|
(34,628 | ) | (31,252 | ) | (30,111 | ) | (32,192 | ) | (35,627 | ) | (35,193 | ) | (32,696 | ) | (36,944 | ) | (39,544 | ) | ||||||||||||||||||
|
Foreign currency impact and other, net
|
(2,187 | ) | (3,726 | ) | (6,974 | ) | 4,860 | (6,274 | ) | (7,122 | ) | 6,877 | (9,363 | ) | (6,842 | ) | ||||||||||||||||||||
|
Balance, end of period
|
$ | 1,066,422 | $ | 1,098,124 | $ | 1,133,542 | $ | 1,179,143 | $ | 1,208,466 | $ | 1,242,983 | $ | 1,293,974 | $ | 1,321,415 | $ | 1,351,180 | ||||||||||||||||||
(1) Outstanding common shares exclude restricted stock units.
4 of 16
| Financial Results and Other Statistical Data |
PRIMERICA, INC.
Financial Supplement
|
|
YOY Q4
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands, except per-share data)
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||||||||||||
|
Earnings per Share
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Basic earnings per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Weighted-average common shares and fully vested equity awards
|
56,598,327 | 56,510,785 | 54,957,274 | 55,080,615 | 55,224,404 | 54,926,561 | 54,712,874 | 53,420,998 | (1,659,617 | ) | -3.0 | % | 55,834,008 | 54,567,006 | (1,267,002 | ) | -2.3 | % | ||||||||||||||||||||||||||||||||||||||
|
Net income
|
$ | 38,845 | $ | 43,490 | $ | 43,190 | $ | 37,201 | $ | 45,080 | $ | 49,271 | $ | 41,595 | $ | 45,466 | $ | 8,265 | 22.2 | % | $ | 162,725 | $ | 181,412 | $ | 18,687 | 11.5 | % | ||||||||||||||||||||||||||||
|
Less income attributable to unvested participating securities
|
(1,017 | ) | (553 | ) | (556 | ) | (482 | ) | (576 | ) | (542 | ) | (447 | ) | (491 | ) | (9 | ) | -1.9 | % | (2,674 | ) | (2,056 | ) | 619 | 23.1 | % | |||||||||||||||||||||||||||||
|
Net income used in computing basic EPS
|
$ | 37,828 | $ | 42,938 | $ | 42,633 | $ | 36,718 | $ | 44,504 | $ | 48,729 | $ | 41,147 | $ | 44,975 | $ | 8,256 | 22.5 | % | $ | 160,051 | $ | 179,357 | $ | 19,306 | 12.1 | % | ||||||||||||||||||||||||||||
|
Basic earnings per share
|
$ | 0.67 | $ | 0.76 | $ | 0.78 | $ | 0.67 | $ | 0.81 | $ | 0.89 | $ | 0.75 | $ | 0.84 | $ | 0.18 | 26.3 | % | $ | 2.87 | $ | 3.29 | $ | 0.42 | 14.7 | % | ||||||||||||||||||||||||||||
|
Net operating income
|
$ | 38,602 | $ | 41,165 | $ | 40,996 | $ | 46,234 | $ | 43,314 | $ | 48,731 | $ | 41,796 | $ | 48,953 | $ | 2,718 | 5.9 | % | $ | 166,997 | $ | 182,793 | $ | 15,795 | 9.5 | % | ||||||||||||||||||||||||||||
|
Less operating income attributable to unvested participating securities
|
(1,011 | ) | (523 | ) | (528 | ) | (600 | ) | (554 | ) | (536 | ) | (450 | ) | (529 | ) | 71 | 11.8 | % | (2,742 | ) | (2,072 | ) | 670 | 24.4 | % | ||||||||||||||||||||||||||||||
|
Net operating income used in computing basic operating EPS
|
$ | 37,591 | $ | 40,642 | $ | 40,468 | $ | 45,634 | $ | 42,760 | $ | 48,194 | $ | 41,346 | $ | 48,424 | $ | 2,789 | 6.1 | % | $ | 164,255 | $ | 180,721 | $ | 16,466 | 10.0 | % | ||||||||||||||||||||||||||||
|
Basic operating income per share
|
$ | 0.66 | $ | 0.72 | $ | 0.74 | $ | 0.83 | $ | 0.77 | $ | 0.88 | $ | 0.76 | $ | 0.91 | $ | 0.08 | 9.4 | % | $ | 2.94 | $ | 3.31 | $ | 0.37 | 12.6 | % | ||||||||||||||||||||||||||||
|
Diluted earnings per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Weighted-average common shares and fully vested equity awards
|
56,598,327 | 56,510,785 | 54,957,274 | 55,080,615 | 55,224,404 | 54,926,561 | 54,712,874 | 53,420,998 | (1,659,617 | ) | -3.0 | % | 55,834,008 | 54,567,006 | (1,267,002 | ) | -2.3 | % | ||||||||||||||||||||||||||||||||||||||
|
Dilutive impact of warrants and options
|
1,809,066 | 1,338,164 | 1,187 | 15,012 | 21,997 | 23,046 | 30,983 | 49,455 | 34,443 |
nm
|
790,857 | 31,370 | (759,487 | ) | -96.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Shares used to calculate diluted EPS
|
58,407,393 | 57,848,949 | 54,958,461 | 55,095,627 | 55,246,401 | 54,949,607 | 54,743,857 | 53,470,453 | (1,625,174 | ) | -2.9 | % | 56,624,865 | 54,598,376 | (2,026,489 | ) | -3.6 | % | ||||||||||||||||||||||||||||||||||||||
|
Net income
|
$ | 38,845 | $ | 43,490 | $ | 43,190 | $ | 37,201 | $ | 45,080 | $ | 49,271 | $ | 41,595 | $ | 45,466 | $ | 8,265 | 22.2 | % | $ | 162,725 | $ | 181,412 | $ | 18,687 | 11.5 | % | ||||||||||||||||||||||||||||
|
Less income attributable to unvested participating securities
|
(991 | ) | (542 | ) | (556 | ) | (482 | ) | (576 | ) | (542 | ) | (447 | ) | (491 | ) | (9 | ) | -1.8 | % | (2,640 | ) | (2,055 | ) | 585 | 22.2 | % | |||||||||||||||||||||||||||||
|
Net income used in computing diluted EPS
|
$ | 37,854 | $ | 42,948 | $ | 42,633 | $ | 36,718 | $ | 44,504 | $ | 48,729 | $ | 41,148 | $ | 44,975 | $ | 8,256 | 22.5 | % | $ | 160,085 | $ | 179,358 | $ | 19,272 | 12.0 | % | ||||||||||||||||||||||||||||
|
Diluted earnings per share
|
$ | 0.65 | $ | 0.74 | $ | 0.78 | $ | 0.67 | $ | 0.81 | $ | 0.89 | $ | 0.75 | $ | 0.84 | $ | 0.17 | 26.2 | % | $ | 2.83 | $ | 3.29 | $ | 0.46 | 16.2 | % | ||||||||||||||||||||||||||||
|
Net operating income
|
$ | 38,602 | $ | 41,165 | $ | 40,996 | $ | 46,234 | $ | 43,314 | $ | 48,731 | $ | 41,796 | $ | 48,953 | $ | 2,718 | 5.9 | % | $ | 166,997 | $ | 182,793 | $ | 15,795 | 9.5 | % | ||||||||||||||||||||||||||||
|
Less operating income attributable to unvested participating securities
|
(985 | ) | (513 | ) | (528 | ) | (600 | ) | (554 | ) | (536 | ) | (449 | ) | (529 | ) | 71 | 11.9 | % | (2,710 | ) | (2,071 | ) | 639 | 23.6 | % | ||||||||||||||||||||||||||||||
|
Net operating income used in computing diluted operating EPS
|
$ | 37,617 | $ | 40,652 | $ | 40,468 | $ | 45,635 | $ | 42,760 | $ | 48,194 | $ | 41,346 | $ | 48,424 | $ | 2,789 | 6.1 | % | $ | 164,288 | $ | 180,722 | $ | 16,435 | 10.0 | % | ||||||||||||||||||||||||||||
|
Diluted operating income per share
|
$ | 0.64 | $ | 0.70 | $ | 0.74 | $ | 0.83 | $ | 0.77 | $ | 0.88 | $ | 0.76 | $ | 0.91 | $ | 0.08 | 9.3 | % | $ | 2.90 | $ | 3.31 | $ | 0.41 | 14.1 | % | ||||||||||||||||||||||||||||
| YOY Q4 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
|||||||||||||||||||||||||||||||||||||||||||
|
Annualized Return on Equity
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Average stockholders' equity
|
$ | 1,291,635 | $ | 1,227,059 | $ | 1,170,885 | $ | 1,208,766 | $ | 1,237,780 | $ | 1,278,132 | $ | 1,298,607 | $ | 1,269,804 | $ | 61,038 | 5.0 | % | $ | 1,224,586 | $ | 1,271,081 | $ | 46,495 | 3.8 | % | ||||||||||||||||||||||||||||
|
Average adjusted stockholders' equity
|
$ | 1,179,064 | $ | 1,134,551 | $ | 1,098,123 | $ | 1,139,888 | $ | 1,165,982 | $ | 1,193,998 | $ | 1,214,421 | $ | 1,194,046 | $ | 54,159 | 4.8 | % | $ | 1,137,906 | $ | 1,192,112 | $ | 54,205 | 4.8 | % | ||||||||||||||||||||||||||||
|
Net income return on stockholders' equity
|
12.0 | % | 14.2 | % | 14.8 | % | 12.3 | % | 14.6 | % | 15.4 | % | 12.8 | % | 14.3 | % | 2.0 | % |
nm
|
13.3 | % | 14.3 | % | 1.0 | % |
nm
|
||||||||||||||||||||||||||||||
|
Net income return on adjusted stockholders' equity
|
13.2 | % | 15.3 | % | 15.7 | % | 13.1 | % | 15.5 | % | 16.5 | % | 13.7 | % | 15.2 | % | 2.2 | % |
nm
|
14.3 | % | 15.2 | % | 0.9 | % |
nm
|
||||||||||||||||||||||||||||||
|
Net operating income return on adjusted stockholders' equity
|
13.1 | % | 14.5 | % | 14.9 | % | 16.2 | % | 14.9 | % | 16.3 | % | 13.8 | % | 16.4 | % | 0.2 | % |
nm
|
14.7 | % | 15.3 | % | 0.7 | % |
nm
|
||||||||||||||||||||||||||||||
|
Capital Structure
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Debt-to-capital (1)
|
22.3 | % | 24.6 | % | 23.9 | % | 23.5 | % | 23.0 | % | 22.3 | % | 22.4 | % | 23.1 | % | -0.3 | % |
nm
|
23.5 | % | 23.1 | % | -0.3 | % |
nm
|
||||||||||||||||||||||||||||||
|
Cash and invested assets to stockholders' equity
|
1.6 | x | 1.6 | x | 1.6 | x | 1.6 | x | 1.6 | x | 1.6 | x | 1.7 | x | 1.8 | x | 0.2 | x |
nm
|
1.6 | x | 1.8 | x | 0.2 | x |
nm
|
||||||||||||||||||||||||||||||
|
Cash and invested assets to adjusted stockholders' equity
|
1.8 | x | 1.7 | x | 1.7 | x | 1.7 | x | 1.7 | x | 1.7 | x | 1.8 | x | 1.9 | x | 0.2 | x |
nm
|
1.7 | x | 1.9 | x | 0.2 | x |
nm
|
||||||||||||||||||||||||||||||
|
Share count, end of period (2)
|
56,682,195 | 54,503,822 | 54,686,613 | 54,833,510 | 54,569,108 | 54,193,684 | 53,681,705 | 52,168,653 | (2,664,857 | ) | -4.9 | % | 54,833,510 | 52,168,653 | (2,664,857 | ) | -4.9 | % | ||||||||||||||||||||||||||||||||||||||
|
Adjusted stockholders' equity per share
|
$ | 21.11 | $ | 19.68 | $ | 20.55 | $ | 21.08 | $ | 21.55 | $ | 22.36 | $ | 22.67 | $ | 22.45 | $ | 1.37 | 6.5 | % | $ | 21.08 | $ | 22.45 | $ | 1.37 | 6.5 | % | ||||||||||||||||||||||||||||
|
Financial Strength Ratings - Primerica Life Insurance Co
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Moody's
|
A2 | A2 | A2 | A2 | A2 | A2 | A2 | A2 |
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|
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|
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|
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|
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|
S&P
|
AA
|
- |
AA
|
- |
AA
|
- |
AA
|
- |
AA
|
- |
AA
|
- |
AA
|
- |
AA
|
- |
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|
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|
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|
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|
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|
A.M. Best
|
A | + | A | + | A | + | A | + | A | + | A | + | A | + | A | + |
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|
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|
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|
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|
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|
Holding Company Senior Debt Ratings
|
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|
Moody's
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
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|
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|
S&P
|
A | - | A | - | A | - | A | - | A | - | A | - | A | - | A | - |
nm
|
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|
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A.M. Best
|
a | - | a | - | a | - | a | - | a | - | a | - | a | - | a | - |
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|
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|
(1)
|
Debt-to-capital is that of the parent company only. Capital in the debt-to-capital ratio includes stockholders' equity and the note payable.
|
|
(2)
|
Share count reflects outstanding common shares, including restricted shares, but excludes restricted stock units (RSUs).
|
5 of 16
| Statements of Income |
PRIMERICA, INC.
Financial Supplement
|
| YOY Q4 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 |
$
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||||||||||||
|
Statement of Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct premiums
|
$ | 560,904 | $ | 568,391 | $ | 567,047 | $ | 568,848 | $ | 568,205 | $ | 576,740 | $ | 577,482 | $ | 578,905 | $ | 10,056 | 1.8 | % | $ | 2,265,190 | $ | 2,301,332 | $ | 36,142 | 1.6 | % | ||||||||||||||||||||||||||||
|
Ceded premiums
|
(410,604 | ) | (417,450 | ) | (407,489 | ) | (408,615 | ) | (402,715 | ) | (410,546 | ) | (402,198 | ) | (401,358 | ) | 7,257 | 1.8 | % | (1,644,158 | ) | (1,616,817 | ) | 27,341 | 1.7 | % | ||||||||||||||||||||||||||||||
|
Net premiums
|
150,300 | 150,941 | 159,558 | 160,233 | 165,490 | 166,194 | 175,284 | 177,546 | 17,313 | 10.8 | % | 621,032 | 684,515 | 63,482 | 10.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Net investment income
|
23,216 | 21,027 | 22,103 | 22,407 | 21,599 | 21,681 | 20,465 | 22,728 | 322 | 1.4 | % | 88,752 | 86,473 | (2,279 | ) | -2.6 | % | |||||||||||||||||||||||||||||||||||||||
|
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based (1)
|
49,656 | 52,108 | 51,934 | 54,386 | 57,904 | 60,255 | 58,394 | 61,204 | 6,818 | 12.5 | % | 208,085 | 237,758 | 29,673 | 14.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Asset-based (2)
|
47,490 | 49,492 | 51,037 | 53,493 | 53,807 | 56,114 | 58,744 | 57,134 | 3,641 | 6.8 | % | 201,511 | 225,799 | 24,288 | 12.1 | % | ||||||||||||||||||||||||||||||||||||||||
|
Account-based (3)
|
9,453 | 9,588 | 9,811 | 10,010 | 9,720 | 9,957 | 10,251 | 10,548 | 539 | 5.4 | % | 38,862 | 40,477 | 1,614 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other commissions and fees
|
5,674 | 5,994 | 5,658 | 6,019 | 5,499 | 5,713 | 5,539 | 6,381 | 362 | 6.0 | % | 23,345 | 23,133 | (212 | ) | -0.9 | % | |||||||||||||||||||||||||||||||||||||||
|
Realized investment (losses) gains
|
2,286 | 3,468 | (407 | ) | 899 | 263 | 831 | (281 | ) | (1,074 | ) | (1,973 | ) |
nm
|
6,246 | (261 | ) | (6,506 | ) | -104.2 | % | |||||||||||||||||||||||||||||||||||
|
Other, net
|
10,376 | 10,872 | 10,714 | 10,776 | 10,045 | 10,384 | 10,791 | 10,917 | 141 | 1.3 | % | 42,737 | 42,137 | (601 | ) | -1.4 | % | |||||||||||||||||||||||||||||||||||||||
|
Total revenues
|
298,450 | 303,490 | 310,408 | 318,222 | 324,328 | 331,130 | 339,187 | 345,385 | 27,163 | 8.5 | % | 1,230,570 | 1,340,030 | 109,460 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Benefits and claims
|
68,816 | 64,322 | 76,548 | 70,246 | 75,191 | 72,412 | 81,235 | 82,578 | 12,332 | 17.6 | % | 279,931 | 311,417 | 31,486 | 11.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
31,252 | 30,111 | 32,192 | 35,627 | 35,193 | 32,696 | 36,944 | 39,544 | 3,918 | 11.0 | % | 129,183 | 144,378 | 15,195 | 11.8 | % | ||||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
4,223 | 4,131 | 3,933 | 4,242 | 4,083 | 3,881 | 4,046 | 3,343 | (900 | ) | -21.2 | % | 16,529 | 15,353 | (1,177 | ) | -7.1 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expenses
|
25,512 | 26,513 | 26,576 | 26,854 | 28,502 | 28,192 | 31,495 | 27,263 | 408 | 1.5 | % | 105,456 | 115,452 | 9,996 | 9.5 | % | ||||||||||||||||||||||||||||||||||||||||
|
Sales commissions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based (1)
|
35,373 | 36,702 | 36,266 | 38,190 | 41,563 | 42,702 | 41,193 | 42,749 | 4,559 | 11.9 | % | 146,531 | 168,207 | 21,676 | 14.8 | % | ||||||||||||||||||||||||||||||||||||||||
|
Asset-based (2)
|
16,668 | 17,807 | 18,805 | 19,988 | 20,725 | 21,859 | 23,378 | 23,011 | 3,024 | 15.1 | % | 73,267 | 88,974 | 15,707 | 21.4 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other sales commissions
|
3,007 | 3,129 | 3,316 | 2,986 | 2,833 | 2,803 | 2,929 | 3,029 | 43 | 1.5 | % | 12,439 | 11,593 | (846 | ) | -6.8 | % | |||||||||||||||||||||||||||||||||||||||
|
Interest expense
|
8,795 | 8,792 | 8,726 | 8,704 | 8,606 | 8,552 | 8,712 | 8,700 | (4 | ) |
nm
|
35,018 | 34,570 | (448 | ) | -1.3 | % | |||||||||||||||||||||||||||||||||||||||
|
Other operating expenses
|
45,664 | 45,031 | 41,273 | 55,241 | 40,798 | 42,292 | 45,235 | 46,037 | (9,204 | ) | -16.7 | % | 187,209 | 174,363 | (12,846 | ) | -6.9 | % | ||||||||||||||||||||||||||||||||||||||
|
Total benefits and expenses
|
239,310 | 236,539 | 247,636 | 262,078 | 257,495 | 255,390 | 275,167 | 276,255 | 14,177 | 5.4 | % | 985,564 | 1,064,307 | 78,743 | 8.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Income from continued operations before income taxes
|
59,140 | 66,950 | 62,772 | 56,143 | 66,832 | 75,740 | 64,020 | 69,130 | 12,987 | 23.1 | % | 245,006 | 275,723 | 30,716 | 12.5 | % | ||||||||||||||||||||||||||||||||||||||||
|
Income taxes
|
21,005 | 23,783 | 22,041 | 19,477 | 23,347 | 26,469 | 22,407 | 23,664 | 4,187 | 21.5 | % | 86,305 | 95,888 | 9,582 | 11.1 | % | ||||||||||||||||||||||||||||||||||||||||
|
Net income from continued operations
|
38,135 | 43,168 | 40,732 | 36,666 | 43,485 | 49,271 | 41,613 | 45,466 | 8,800 | 24.0 | % | 158,701 | 179,835 | 21,134 | 13.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Net income from discontinued operations net tax
|
710 | 322 | 2,458 | 534 | 1,596 | — | (18 | ) | — | (534 | ) | -100.0 | % | 4,025 | 1,578 | (2,447 | ) | -60.8 | % | |||||||||||||||||||||||||||||||||||||
|
Net income
|
$ | 38,845 | $ | 43,490 | $ | 43,190 | $ | 37,201 | $ | 45,080 | $ | 49,271 | $ | 41,595 | $ | 45,466 | $ | 8,265 | 22.2 | % | $ | 162,725 | $ | 181,412 | $ | 18,687 | 11.5 | % | ||||||||||||||||||||||||||||
|
Income from Continued Operations Before Income Taxes by Segment
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Term Life | $ | 45,125 | $ | 51,899 | $ | 50,136 | $ | 50,042 | $ | 47,205 | $ | 55,070 | $ | 45,932 | $ | 52,826 | $ | 2,784 | 5.6 | % | $ | 197,201 | $ | 201,033 | $ | 3,832 | 1.9 | % | ||||||||||||||||||||||||||||
|
Investment & Savings Products
|
26,353 | 27,488 | 31,498 | 19,810 | 34,028 | 36,047 | 36,904 | 39,039 | 19,229 | 97.1 | % | 105,149 | 146,017 | 40,868 | 38.9 | % | ||||||||||||||||||||||||||||||||||||||||
|
Corporate & Other Distributed Products
|
(12,338 | ) | (12,436 | ) | (18,862 | ) | (13,708 | ) | (14,400 | ) | (15,377 | ) | (18,816 | ) | (22,735 | ) | (9,026 | ) | -65.8 | % | (57,344 | ) | (71,328 | ) | (13,984 | ) | -24.4 | % | ||||||||||||||||||||||||||||
|
Income from continued operations before income taxes
|
$ | 59,140 | $ | 66,950 | $ | 62,772 | $ | 56,143 | $ | 66,832 | $ | 75,740 | $ | 64,020 | $ | 69,130 | $ | 12,987 | 23.1 | % | $ | 245,006 | $ | 275,723 | $ | 30,716 | 12.5 | % | ||||||||||||||||||||||||||||
|
(1)
|
Sales-based - revenues or commission expenses relating to the sales of mutual funds and variable annuities
|
|
(2)
|
Asset-based - revenues or commission expenses relating to the value of assets in client accounts for which we earn ongoing service, distribution, and other fees
|
|
(3)
|
Account-based - revenues relating to the fee generating client accounts we administer
|
6 of 16
| Reconciliation of Statement of Income Non-GAAP to GAAP Financial Measures |
PRIMERICA, INC.
Financial Supplement
|
| YOY Q4 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
$
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
|||||||||||||||||||||||||||||||||||||||||||
|
Reconciliation from Term Life Adjusted Direct Premiums to Term Life Direct Premiums
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Term Life adjusted direct premiums
|
$ | 193,409 | $ | 201,422 | $ | 205,503 | $ | 210,572 | $ | 214,780 | $ | 223,706 | $ | 228,422 | $ | 233,044 | $ | 22,473 | 10.7 | % | $ | 810,905 | $ | 899,952 | $ | 89,047 | 11.0 | % | ||||||||||||||||||||||||||||
|
Premiums ceded to Citi
|
358,625 | 357,613 | 351,983 | 350,077 | 344,883 | 344,143 | 340,170 | 337,501 | (12,576 | ) | -3.6 | % | 1,418,299 | 1,366,697 | (51,602 | ) | -3.6 | % | ||||||||||||||||||||||||||||||||||||||
|
Term Life direct premiums
|
$ | 552,034 | $ | 559,035 | $ | 557,486 | $ | 560,649 | $ | 559,663 | $ | 567,849 | $ | 568,592 | $ | 570,545 | $ | 9,896 | 1.8 | % | $ | 2,229,204 | $ | 2,266,649 | $ | 37,445 | 1.7 | % | ||||||||||||||||||||||||||||
|
Reconciliation from Term Life Other Ceded Premiums to Term Life Ceded Premiums
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Term Life other ceded premiums
|
$ | (49,229 | ) | $ | (56,608 | ) | $ | (52,476 | ) | $ | (55,430 | ) | $ | (55,450 | ) | $ | (63,424 | ) | $ | (59,417 | ) | $ | (60,978 | ) | $ | (5,548 | ) | -10.0 | % | $ | (213,743 | ) | $ | (239,268 | ) | $ | (25,525 | ) | -11.9 | % | ||||||||||||||||
|
Premiums ceded to Citi
|
(358,625 | ) | (357,613 | ) | (351,983 | ) | (350,077 | ) | (344,883 | ) | (344,143 | ) | (340,170 | ) | (337,501 | ) | 12,576 | 3.6 | % | (1,418,299 | ) | (1,366,697 | ) | 51,602 | 3.6 | % | ||||||||||||||||||||||||||||||
|
Term Life ceded premiums
|
$ | (407,854 | ) | $ | (414,222 | ) | $ | (404,459 | ) | $ | (405,506 | ) | $ | (400,334 | ) | $ | (407,566 | ) | $ | (399,587 | ) | $ | (398,478 | ) | $ | 7,028 | 1.7 | % | $ | (1,632,041 | ) | $ | (1,605,965 | ) | $ | 26,076 | 1.6 | % | ||||||||||||||||||
|
Reconciliation from Operating Revenues to Total Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
$ | 296,164 | $ | 300,022 | $ | 310,815 | $ | 317,323 | $ | 324,065 | $ | 330,299 | $ | 339,468 | $ | 346,459 | $ | 29,136 | 9.2 | % | $ | 1,224,324 | $ | 1,340,290 | $ | 115,966 | 9.5 | % | ||||||||||||||||||||||||||||
|
Realized investment gains/(losses)
|
2,286 | 3,468 | (407 | ) | 899 | 263 | 831 | (281 | ) | (1,074 | ) |
nm
|
nm
|
6,246 | (261 | ) |
nm
|
nm
|
||||||||||||||||||||||||||||||||||||||
|
Total revenues
|
$ | 298,450 | $ | 303,490 | $ | 310,408 | $ | 318,222 | $ | 324,328 | $ | 331,130 | $ | 339,187 | $ | 345,385 | $ | 27,163 | 8.5 | % | $ | 1,230,570 | $ | 1,340,030 | $ | 109,460 | 8.9 | % | ||||||||||||||||||||||||||||
|
Reconciliation from Operating Income Before Income Taxes to Income from Continued Operations Before Income Taxes
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | 59,864 | $ | 63,844 | $ | 63,179 | $ | 70,795 | $ | 66,569 | $ | 74,909 | $ | 64,301 | $ | 74,432 | $ | 3,636 | 5.1 | % | $ | 257,683 | $ | 280,211 | $ | 22,528 | 8.7 | % | ||||||||||||||||||||||||||||
|
Operating income before income taxes reconciling items:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Realized investment gains/(losses)
|
2,286 | 3,468 | (407 | ) | 899 | 263 | 831 | (281 | ) | (1,074 | ) |
nm
|
nm
|
6,246 | (261 | ) |
nm
|
nm
|
||||||||||||||||||||||||||||||||||||||
|
Co-CEOs transition expenses
|
— | — | — | — | — | — | — | (4,228 | ) |
nm
|
nm
|
— | (4,228 | ) |
nm
|
nm
|
||||||||||||||||||||||||||||||||||||||||
|
FRS legal settlements
|
— | (188 | ) | — | (15,551 | ) | — | — | — | — |
nm
|
nm
|
(15,738 | ) | — |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||
|
IPO equity award grants
|
(3,010 | ) | (174 | ) | — | — | — | — | — | — |
nm
|
nm
|
(3,184 | ) | — |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||
|
Total operating income before income taxes reconciling items
|
(724 | ) | 3,106 | (407 | ) | (14,652 | ) | 263 | 831 | (281 | ) | (5,302 | ) |
nm
|
nm
|
(12,677 | ) | (4,489 | ) |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||
|
Income from continued operations before income taxes
|
$ | 59,140 | $ | 66,950 | $ | 62,772 | $ | 56,143 | $ | 66,832 | $ | 75,740 | $ | 64,020 | $ | 69,130 | $ | 12,987 | 23.1 | % | $ | 245,006 | $ | 275,723 | $ | 30,716 | 12.5 | % | ||||||||||||||||||||||||||||
|
Reconciliation from Net Operating Income to Net Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Net operating income
|
$ | 38,602 | $ | 41,165 | $ | 40,996 | $ | 46,234 | $ | 43,314 | $ | 48,731 | $ | 41,796 | $ | 48,953 | $ | 2,718 | 5.9 | % | $ | 166,997 | $ | 182,793 | $ | 15,795 | 9.5 | % | ||||||||||||||||||||||||||||
|
Net operating income reconciling items:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes reconciling items
|
(724 | ) | 3,106 | (407 | ) | (14,652 | ) | 263 | 831 | (281 | ) | (5,302 | ) |
nm
|
nm
|
(12,677 | ) | (4,489 | ) |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||
|
Tax impact of operating income reconciling items at effective tax rate
|
257 | (1,103 | ) | 143 | 5,084 | (92 | ) | (291 | ) | 98 | 1,815 |
nm
|
nm
|
4,380 | 1,531 |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||
|
Total net operating income reconciling items
|
(467 | ) | 2,003 | (264 | ) | (9,568 | ) | 171 | 541 | (183 | ) | (3,487 | ) |
nm
|
nm
|
(8,296 | ) | (2,958 | ) |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||
|
Net income from continued operations
|
$ | 38,135 | $ | 43,168 | $ | 40,732 | $ | 36,666 | $ | 43,485 | $ | 49,271 | $ | 41,613 | $ | 45,466 | $ | 8,800 | 24.0 | % | $ | 158,701 | $ | 179,835 | $ | 21,134 | 13.3 | % | ||||||||||||||||||||||||||||
|
Net income from discontinued operations net tax
|
710 | 322 | 2,458 | 534 | 1,596 | — | (18 | ) | — |
nm
|
nm
|
4,025 | 1,578 |
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||||
|
Net income
|
$ | 38,845 | $ | 43,490 | $ | 43,190 | $ | 37,201 | $ | 45,080 | $ | 49,271 | $ | 41,595 | $ | 45,466 | $ | 8,265 | 22.2 | % | $ | 162,725 | $ | 181,412 | $ | 18,687 | 11.5 | % | ||||||||||||||||||||||||||||
7 of 16
| Segment Operating Results |
PRIMERICA, INC.
Financial Supplement
|
| YOY Q4 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
$
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||||||||||||
|
Term Life Insurance
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct Premiums
|
$ | 552,034 | $ | 559,035 | $ | 557,486 | $ | 560,649 | $ | 559,663 | $ | 567,849 | $ | 568,592 | $ | 570,545 | $ | 9,896 | 1.8 | % | $ | 2,229,204 | $ | 2,266,649 | $ | 37,445 | 1.7 | % | ||||||||||||||||||||||||||||
|
Premiums ceded to Citi (1)
|
(358,625 | ) | (357,613 | ) | (351,983 | ) | (350,077 | ) | (344,883 | ) | (344,143 | ) | (340,170 | ) | (337,501 | ) | 12,576 | 3.6 | % | (1,418,299 | ) | (1,366,697 | ) | 51,602 | 3.6 | % | ||||||||||||||||||||||||||||||
|
Adjusted direct premiums (2)
|
193,409 | 201,422 | 205,503 | 210,572 | 214,780 | 223,706 | 228,422 | 233,044 | 22,473 | 10.7 | % | 810,905 | 899,952 | 89,047 | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other ceded premiums (3)
|
(49,229 | ) | (56,608 | ) | (52,476 | ) | (55,430 | ) | (55,450 | ) | (63,424 | ) | (59,417 | ) | (60,978 | ) | (5,548 | ) | -10.0 | % | (213,743 | ) | (239,268 | ) | (25,525 | ) | -11.9 | % | ||||||||||||||||||||||||||||
|
Net premiums
|
144,180 | 144,813 | 153,027 | 155,142 | 159,330 | 160,282 | 169,005 | 172,067 | 16,925 | 10.9 | % | 597,162 | 660,684 | 63,521 | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Allocated net investment income
|
16,670 | 16,935 | 17,385 | 17,807 | 16,713 | 16,839 | 17,235 | 18,986 | 1,179 | 6.6 | % | 68,796 | 69,773 | 977 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other, net
|
6,984 | 7,436 | 7,399 | 7,199 | 6,937 | 7,245 | 7,337 | 7,318 | 119 | 1.7 | % | 29,017 | 28,838 | (180 | ) | -0.6 | % | |||||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
167,833 | 169,184 | 177,811 | 180,147 | 182,980 | 184,366 | 193,577 | 198,370 | 18,223 | 10.1 | % | 694,975 | 759,294 | 64,319 | 9.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Benefits and claims
|
65,547 | 61,689 | 67,788 | 67,334 | 71,263 | 68,287 | 77,722 | 78,059 | 10,725 | 15.9 | % | 262,357 | 295,332 | 32,975 | 12.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
27,865 | 25,777 | 29,679 | 32,570 | 32,721 | 29,778 | 34,171 | 36,661 | 4,091 | 12.6 | % | 115,891 | 133,331 | 17,441 | 15.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
1,199 | 1,062 | 901 | 1,437 | 1,315 | 929 | 1,070 | 690 | (748 | ) | -52.0 | % | 4,600 | 4,003 | (597 | ) | -13.0 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expenses
|
23,846 | 24,508 | 25,125 | 24,603 | 26,413 | 26,293 | 30,514 | 25,978 | 1,375 | 5.6 | % | 98,081 | 109,198 | 11,118 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Interest expense
|
4,252 | 4,250 | 4,183 | 4,161 | 4,063 | 4,009 | 4,168 | 4,156 | (5 | ) | -0.1 | % | 16,846 | 16,396 | (450 | ) | -2.7 | % | ||||||||||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
122,708 | 117,285 | 127,676 | 130,105 | 135,776 | 129,296 | 147,645 | 145,544 | 15,439 | 11.9 | % | 497,774 | 558,261 | 60,486 | 12.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | 45,125 | $ | 51,899 | $ | 50,136 | $ | 50,042 | $ | 47,205 | $ | 55,070 | $ | 45,932 | $ | 52,826 | $ | 2,784 | 5.6 | % | $ | 197,201 | $ | 201,033 | $ | 3,832 | 1.9 | % | ||||||||||||||||||||||||||||
|
Investment & Savings Products
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based
|
$ | 49,656 | $ | 52,108 | $ | 51,934 | $ | 54,386 | $ | 57,904 | $ | 60,255 | $ | 58,394 | $ | 61,204 | $ | 6,818 | 12.5 | % | $ | 208,085 | $ | 237,758 | $ | 29,673 | 14.3 | % | ||||||||||||||||||||||||||||
|
Asset-based
|
47,490 | 49,492 | 51,037 | 53,493 | 53,807 | 56,114 | 58,744 | 57,134 | 3,641 | 6.8 | % | 201,511 | 225,799 | 24,288 | 12.1 | % | ||||||||||||||||||||||||||||||||||||||||
|
Account-based
|
9,453 | 9,588 | 9,811 | 10,010 | 9,720 | 9,957 | 10,251 | 10,548 | 539 | 5.4 | % | 38,862 | 40,477 | 1,614 | 4.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other, net
|
2,122 | 2,173 | 1,941 | 2,444 | 1,839 | 1,821 | 1,884 | 2,497 | 52 | 2.1 | % | 8,680 | 8,040 | (640 | ) | -7.4 | % | |||||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
108,721 | 113,361 | 114,723 | 120,333 | 123,270 | 128,147 | 129,273 | 131,383 | 11,050 | 9.2 | % | 457,138 | 512,073 | 54,935 | 12.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
2,892 | 3,876 | 2,542 | 1,885 | 2,335 | 2,172 | 2,484 | 1,743 | (143 | ) | -7.6 | % | 11,195 | 8,734 | (2,462 | ) | -22.0 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
2,274 | 2,331 | 2,249 | 2,193 | 2,086 | 2,237 | 2,290 | 2,185 | (8 | ) | -0.4 | % | 9,046 | 8,799 | (247 | ) | -2.7 | % | ||||||||||||||||||||||||||||||||||||||
|
Sales commissions:
|
#DIV/0!
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based
|
35,373 | 36,702 | 36,266 | 38,190 | 41,563 | 42,702 | 41,193 | 42,749 | 4,559 | 11.9 | % | 146,531 | 168,207 | 21,676 | 14.8 | % | ||||||||||||||||||||||||||||||||||||||||
|
Asset-based
|
16,668 | 17,807 | 18,805 | 19,988 | 20,725 | 21,859 | 23,378 | 23,011 | 3,024 | 15.1 | % | 73,267 | 88,974 | 15,707 | 21.4 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other operating expenses
|
25,162 | 24,971 | 23,362 | 22,716 | 22,532 | 23,131 | 23,024 | 22,655 | (60 | ) | -0.3 | % | 96,211 | 91,342 | (4,869 | ) | -5.1 | % | ||||||||||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
82,368 | 85,686 | 83,224 | 84,972 | 89,243 | 92,100 | 92,369 | 92,344 | 7,372 | 8.7 | % | 336,251 | 366,056 | 29,805 | 8.9 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | 26,353 | $ | 27,675 | $ | 31,498 | $ | 35,361 | $ | 34,028 | $ | 36,047 | $ | 36,904 | $ | 39,039 | $ | 3,678 | 10.4 | % | $ | 120,888 | $ | 146,017 | $ | 25,129 | 20.8 | % | ||||||||||||||||||||||||||||
|
Corporate & Other Distributed Products
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct premiums
|
$ | 8,870 | $ | 9,356 | $ | 9,561 | $ | 8,200 | $ | 8,542 | $ | 8,892 | $ | 8,890 | $ | 8,360 | $ | 160 | 1.9 | % | $ | 35,987 | $ | 34,683 | $ | (1,303 | ) | -3.6 | % | |||||||||||||||||||||||||||
|
Ceded premiums
|
(2,750 | ) | (3,229 | ) | (3,030 | ) | (3,109 | ) | (2,381 | ) | (2,980 | ) | (2,611 | ) | (2,880 | ) | 229 | 7.4 | % | (12,117 | ) | (10,852 | ) | 1,264 | 10.4 | % | ||||||||||||||||||||||||||||||
|
Net premiums
|
6,120 | 6,127 | 6,531 | 5,091 | 6,160 | 5,912 | 6,279 | 5,480 | 389 | 7.6 | % | 23,870 | 23,831 | (39 | ) | -0.2 | % | |||||||||||||||||||||||||||||||||||||||
|
Allocated net investment income
|
6,546 | 4,092 | 4,718 | 4,600 | 4,885 | 4,842 | 3,230 | 3,742 | (858 | ) | -18.6 | % | 19,956 | 16,701 | (3,255 | ) | -16.3 | % | ||||||||||||||||||||||||||||||||||||||
|
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loans | 293 | 406 | 264 | 256 | 200 | 101 | 78 | 69 | (187 | ) | -73.1 | % | 1,220 | 447 | (773 | ) | -63.4 | % | ||||||||||||||||||||||||||||||||||||||
|
DebtWatchers
|
491 | 462 | 482 | 411 | 385 | 360 | 337 | 316 | (94 | ) | -23.0 | % | 1,846 | 1,398 | (448 | ) |
nm
|
|||||||||||||||||||||||||||||||||||||||
|
Prepaid Legal Services
|
2,254 | 2,255 | 2,396 | 2,415 | 2,339 | 2,285 | 2,487 | 3,225 | 810 | 33.5 | % | 9,321 | 10,336 | 1,016 | 10.9 | % | ||||||||||||||||||||||||||||||||||||||||
|
Auto and Homeowners Insurance
|
1,685 | 1,890 | 1,470 | 1,982 | 1,719 | 1,998 | 1,606 | 2,032 | 49 | 2.5 | % | 7,028 | 7,354 | 326 | 4.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Long-Term Care Insurance
|
628 | 664 | 705 | 565 | 521 | 570 | 565 | 550 | (15 | ) | -2.6 | % | 2,562 | 2,206 | (356 | ) | -13.9 | % | ||||||||||||||||||||||||||||||||||||||
|
Other sales commissions
|
323 | 316 | 341 | 389 | 337 | 399 | 467 | 188 | (200 | ) | -51.5 | % | 1,369 | 1,392 | 22 | 1.6 | % | |||||||||||||||||||||||||||||||||||||||
|
Other, net
|
1,270 | 1,263 | 1,374 | 1,133 | 1,269 | 1,318 | 1,569 | 1,103 | (30 | ) | -2.7 | % | 5,040 | 5,259 | 219 | 4.4 | % | |||||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
19,610 | 17,477 | 18,281 | 16,843 | 17,814 | 17,785 | 16,618 | 16,706 | (137 | ) | -0.8 | % | 72,211 | 68,923 | (3,288 | ) | -4.6 | % | ||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Benefits and claims
|
3,269 | 2,634 | 8,760 | 2,912 | 3,928 | 4,125 | 3,513 | 4,519 | 1,607 | 55.2 | % | 17,574 | 16,085 | (1,489 | ) | -8.5 | % | |||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
496 | 459 | (29 | ) | 1,171 | 137 | 747 | 289 | 1,141 | (31 | ) | -2.6 | % | 2,097 | 2,313 | 216 | 10.3 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
750 | 738 | 783 | 612 | 681 | 715 | 686 | 468 | (144 | ) | -23.5 | % | 2,883 | 2,550 | (333 | ) | -11.5 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expenses
|
1,667 | 2,006 | 1,451 | 2,252 | 2,088 | 1,900 | 981 | 1,285 | (967 | ) | -42.9 | % | 7,376 | 6,254 | (1,122 | ) | -15.2 | % | ||||||||||||||||||||||||||||||||||||||
|
Sales commissions
|
3,007 | 3,129 | 3,316 | 2,986 | 2,833 | 2,803 | 2,929 | 3,029 | 43 | 1.5 | % | 12,439 | 11,593 | (846 | ) | -6.8 | % | |||||||||||||||||||||||||||||||||||||||
|
Interest expense
|
4,543 | 4,543 | 4,543 | 4,543 | 4,543 | 4,543 | 4,544 | 4,544 | 1 |
nm
|
18,172 | 18,174 | 2 |
nm
|
||||||||||||||||||||||||||||||||||||||||||
|
Other operating expenses
|
17,492 | 19,698 | 17,911 | 16,975 | 18,266 | 19,161 | 22,211 | 19,154 | 2,179 | 12.8 | % | 72,075 | 78,792 | 6,717 | 9.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
31,224 | 33,207 | 36,736 | 31,450 | 32,477 | 33,993 | 35,153 | 34,139 | 2,689 | 8.5 | % | 132,616 | 135,763 | 3,146 | 2.4 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | (11,614 | ) | $ | (15,730 | ) | $ | (18,455 | ) | $ | (14,607 | ) | $ | (14,663 | ) | $ | (16,208 | ) | $ | (18,535 | ) | $ | (17,433 | ) | $ | (2,826 | ) | -19.3 | % | $ | (60,406 | ) | $ | (66,839 | ) | $ | (6,434 | ) | -10.7 | % | ||||||||||||||||
|
(1)
|
Premiums ceded to Citi - premiums ceded to Citi under the Citi reinsurance transactions excluding any reimbursements from Citi on previously existing reinsurance agreements
|
|
(2)
|
Adjusted direct premiums - direct premiums net of premiums ceded to Citi
|
|
(3)
|
Other ceded premiums - premiums ceded to non-Citi reinsurers net of any applicable reimbursements from Citi
|
8 of 16
| Term Life Insurance - Financial Results and Analysis |
PRIMERICA, INC.
Financial Supplement
|
| YOY Q4 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Term Life Insurance Operating Income Before Income Taxes
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
$
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct Premiums
|
$ | 552,034 | $ | 559,035 | $ | 557,486 | $ | 560,649 | $ | 559,663 | $ | 567,849 | $ | 568,592 | $ | 570,545 | 9,896 | 1.8 | % | $ | 2,229,204 | $ | 2,266,649 | $ | 37,445 | 1.7 | % | |||||||||||||||||||||||||||||
|
Premiums ceded to Citi (1)
|
(358,625 | ) | (357,613 | ) | (351,983 | ) | (350,077 | ) | (344,883 | ) | (344,143 | ) | (340,170 | ) | (337,501 | ) | 12,576 | 3.6 | % | (1,418,299 | ) | (1,366,697 | ) | 51,602 | 3.6 | % | ||||||||||||||||||||||||||||||
|
Adjusted direct premiums (2)
|
193,409 | 201,422 | 205,503 | 210,572 | 214,780 | 223,706 | 228,422 | 233,044 | 22,473 | 10.7 | % | 810,905 | 899,952 | 89,047 | 11.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other ceded premiums (3)
|
(49,229 | ) | (56,608 | ) | (52,476 | ) | (55,430 | ) | (55,450 | ) | (63,424 | ) | (59,417 | ) | (60,978 | ) | (5,548 | ) | -10.0 | % | (213,743 | ) | (239,268 | ) | (25,525 | ) | -11.9 | % | ||||||||||||||||||||||||||||
|
Net premiums
|
144,180 | 144,813 | 153,027 | 155,142 | 159,330 | 160,282 | 169,005 | 172,067 | 16,925 | 10.9 | % | 597,162 | 660,684 | 63,521 | 10.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Allocated net investment income
|
16,670 | 16,935 | 17,385 | 17,807 | 16,713 | 16,839 | 17,235 | 18,986 | 1,179 | 6.6 | % | 68,796 | 69,773 | 977 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other, net
|
6,984 | 7,436 | 7,399 | 7,199 | 6,937 | 7,245 | 7,337 | 7,318 | 119 | 1.7 | % | 29,017 | 28,838 | (180 | ) | -0.6 | % | |||||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
167,833 | 169,184 | 177,811 | 180,147 | 182,980 | 184,366 | 193,577 | 198,370 | 18,223 | 10.1 | % | 694,975 | 759,294 | 64,319 | 9.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Benefits and claims
|
65,547 | 61,689 | 67,788 | 67,334 | 71,263 | 68,287 | 77,722 | 78,059 | 10,725 | 15.9 | % | 262,357 | 295,332 | 32,975 | 12.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
27,865 | 25,777 | 29,679 | 32,570 | 32,721 | 29,778 | 34,171 | 36,661 | 4,091 | 12.6 | % | 115,891 | 133,331 | 17,441 | 15.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
1,199 | 1,062 | 901 | 1,437 | 1,315 | 929 | 1,070 | 690 | (748 | ) | -52.0 | % | 4,600 | 4,003 | (597 | ) | -13.0 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expenses
|
23,846 | 24,508 | 25,125 | 24,603 | 26,413 | 26,293 | 30,514 | 25,978 | 1,375 | 5.6 | % | 98,081 | 109,198 | 11,118 | 11.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Interest expense
|
4,252 | 4,250 | 4,183 | 4,161 | 4,063 | 4,009 | 4,168 | 4,156 | (5 | ) | -0.1 | % | 16,846 | 16,396 | (450 | ) | -2.7 | % | ||||||||||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
122,708 | 117,285 | 127,676 | 130,105 | 135,776 | 129,296 | 147,645 | 145,544 | 15,439 | 11.9 | % | 497,774 | 558,261 | 60,486 | 12.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | 45,125 | $ | 51,899 | $ | 50,136 | $ | 50,042 | $ | 47,205 | $ | 55,070 | $ | 45,932 | $ | 52,826 | $ | 2,784 | 5.6 | % | $ | 197,201 | $ | 201,033 | $ | 3,832 | 1.9 | % | ||||||||||||||||||||||||||||
|
Total Term Life Insurance - Financial Analysis
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Primary direct premiums (4)
|
$ | 106,077 | $ | 114,407 | $ | 119,852 | $ | 125,394 | $ | 130,855 | $ | 139,973 | $ | 145,636 | $ | 150,916 | $ | 25,522 | 20.4 | % | $ | 465,730 | $ | 567,380 | $ | 101,649 | 21.8 | % | ||||||||||||||||||||||||||||
|
Legacy direct premiums (5)
|
445,957 | 444,628 | 437,634 | 435,255 | 428,809 | 427,876 | 422,956 | 419,629 | (15,626 | ) | -3.6 | % | 1,763,473 | 1,699,269 | (64,204 | ) | -3.6 | % | ||||||||||||||||||||||||||||||||||||||
|
Total direct premiums
|
$ | 552,034 | $ | 559,035 | $ | 557,486 | $ | 560,649 | $ | 559,663 | $ | 567,849 | $ | 568,592 | $ | 570,545 | $ | 9,896 | 1.8 | % | $ | 2,229,204 | $ | 2,266,649 | $ | 37,445 | 1.7 | % | ||||||||||||||||||||||||||||
|
Premiums ceded to Citi
|
$ | 358,625 | $ | 357,613 | $ | 351,983 | $ | 350,077 | $ | 344,883 | $ | 344,143 | $ | 340,170 | $ | 337,501 | (12,576 | ) | -3.6 | % | $ | 1,418,299 | $ | 1,366,697 | $ | (51,602 | ) | -3.6 | % | |||||||||||||||||||||||||||
|
% of Legacy direct premiums
|
80.4 | % | 80.4 | % | 80.4 | % | 80.4 | % | 80.4 | % | 80.4 | % | 80.4 | % | 80.4 | % |
nm
|
nm
|
80.4 | % | 80.4 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
Benefits and claims, net (6)
|
$ | 114,776 | $ | 118,297 | $ | 120,263 | $ | 122,764 | $ | 126,713 | $ | 131,711 | $ | 137,139 | $ | 139,037 | 16,273 | 13.3 | % | $ | 476,100 | $ | 534,600 | $ | 58,500 | 12.3 | % | |||||||||||||||||||||||||||||
|
% of adjusted direct premiums
|
59.3 | % | 58.7 | % | 58.5 | % | 58.3 | % | 59.0 | % | 58.9 | % | 60.0 | % | 59.7 | % |
nm
|
nm
|
58.7 | % | 59.4 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
DAC amortization & insurance commissions
|
$ | 29,064 | $ | 26,839 | $ | 30,580 | $ | 34,007 | $ | 34,036 | $ | 30,707 | $ | 35,241 | $ | 37,351 | 3,343 | 9.8 | % | $ | 120,490 | $ | 137,335 | $ | 16,844 | 14.0 | % | |||||||||||||||||||||||||||||
|
% of adjusted direct premiums
|
15.0 | % | 13.3 | % | 14.9 | % | 16.1 | % | 15.8 | % | 13.7 | % | 15.4 | % | 16.0 | % |
nm
|
nm
|
14.9 | % | 15.3 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
Insurance expenses, net (7)
|
$ | 16,862 | $ | 17,072 | $ | 17,726 | $ | 17,404 | $ | 19,476 | $ | 19,047 | $ | 23,177 | $ | 18,660 | 1,256 | 7.2 | % | $ | 69,063 | $ | 80,361 | $ | 11,297 | 16.4 | % | |||||||||||||||||||||||||||||
|
% of adjusted direct premiums
|
8.7 | % | 8.5 | % | 8.6 | % | 8.3 | % | 9.1 | % | 8.5 | % | 10.1 | % | 8.0 | % |
nm
|
nm
|
8.5 | % | 8.9 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
Total term life operating income before income taxes
|
$ | 45,125 | $ | 51,899 | $ | 50,136 | $ | 50,042 | $ | 47,205 | $ | 55,070 | $ | 45,932 | $ | 52,826 | 2,784 | 5.6 | % | $ | 197,201 | $ | 201,033 | $ | 3,832 | 1.9 | % | |||||||||||||||||||||||||||||
|
% of adjusted direct premiums
|
23.3 | % | 25.8 | % | 24.4 | % | 23.8 | % | 22.0 | % | 24.6 | % | 20.1 | % | 22.7 | % |
nm
|
nm
|
24.3 | % | 22.3 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
(1)
|
Premiums ceded to Citi - premiums ceded to Citi under the Citi reinsurance transactions excluding any reimbursements from Citi on previously existing reinsurance agreements
|
|
(2)
|
Adjusted direct premiums - direct premiums net of premiums ceded to Citi
|
|
(3)
|
Other ceded premiums - premiums ceded to non-Citi reinsurers net of any applicable reimbursements from Citi
|
|
(4)
|
Primary direct premiums - direct premiums not subject to the 2010 Citi reinsurance transactions
|
|
(5)
|
Legacy direct premiums - direct premiums subject to the 2010 Citi reinsurance transactions
|
|
(6)
|
Benefits and claims, net - benefits & claims net of other ceded premiums which are largely YRT
|
|
(7)
|
Insurance expenses, net - insurance expenses net of other net revenues
|
9 of 16
| Term Life Insurance - Key Statistics |
PRIMERICA, INC.
Financial Supplement
|
| YOY Q4 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands, except as noted)
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
$
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||||||||||||
|
Key Statistics
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Life-insurance licensed sales force, beginning of period
|
92,373 | 90,917 | 92,227 | 94,529 | 95,566 | 95,382 | 96,596 | 97,966 | 3,437 | 3.6 | % | 92,373 | 95,566 | 3,193 | 3.5 | % | ||||||||||||||||||||||||||||||||||||||||
|
New life-licensed representatives
|
7,165 | 8,875 | 9,630 | 8,485 | 7,447 | 9,082 | 8,793 | 8,510 | 25 | 0.3 | % | 34,155 | 33,832 | (323 | ) | -0.9 | % | |||||||||||||||||||||||||||||||||||||||
|
Non-renewal and terminated representatives
|
(8,621 | ) | (7,565 | ) | (7,328 | ) | (7,448 | ) | (7,631 | ) | (7,868 | ) | (7,423 | ) | (8,118 | ) | (670 | ) | -9.0 | % | (30,962 | ) | (31,040 | ) | (78 | ) | -0.3 | % | ||||||||||||||||||||||||||||
|
Life-insurance licensed sales force, end of period
|
90,917 | 92,227 | 94,529 | 95,566 | 95,382 | 96,596 | 97,966 | 98,358 | 2,792 | 2.9 | % | 95,566 | 98,358 | 2,792 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||
|
Estimated annualized issued term life premium ($mills) (1):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Premium from new policies
|
$ | 40.2 | $ | 45.9 | $ | 43.9 | $ | 43.5 | $ | 40.1 | $ | 48.0 | $ | 44.7 | $ | 47.0 | $ | 3.5 | 8.0 | % | $ | 173.5 | $ | 179.8 | $ | 6.3 | 3.6 | % | ||||||||||||||||||||||||||||
|
Additions and increases in premium
|
11.4 | 12.3 | 12.3 | 12.5 | 12.4 | 13.0 | 12.9 | 13.3 | 0.8 | 6.2 | % | 48.6 | 51.6 | 3.0 | 6.3 | % | ||||||||||||||||||||||||||||||||||||||||
|
Total estimated annualized issued term life premium
|
$ | 51.6 | $ | 58.2 | $ | 56.2 | $ | 56.0 | $ | 52.5 | $ | 61.1 | $ | 57.6 | $ | 60.3 | $ | 4.3 | 7.6 | % | $ | 222.1 | $ | 231.4 | $ | 9.3 | 4.2 | % | ||||||||||||||||||||||||||||
|
Issued term life policies
|
50,356 | 57,622 | 53,997 | 52,642 | 49,320 | 59,569 | 55,146 | 56,949 | 4,307 | 8.2 | % | 214,617 | 220,984 | 6,367 | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||
|
Estimated average annualized issued term life premium per policy (1)(2)
|
$ | 799 | $ | 797 | $ | 813 | $ | 826 | $ | 813 | $ | 806 | $ | 810 | $ | 825 | $ | (1 | ) | -0.1 | % | $ | 808 | $ | 814 | $ | 5 | 0.6 | % | |||||||||||||||||||||||||||
|
Term life face amount in-force, beginning of period ($mills)
|
$ | 670,412 | $ | 670,414 | $ | 674,355 | $ | 676,360 | $ | 674,868 | $ | 673,078 | $ | 681,978 | $ | 681,178 | $ | 4,817 | 0.7 | % | $ | 670,412 | $ | 674,868 | $ | 4,456 | 0.7 | % | ||||||||||||||||||||||||||||
|
Issued term life face amount (3)
|
15,709 | 17,798 | 17,056 | 17,219 | 15,748 | 18,494 | 17,337 | 17,996 | 777 | 4.5 | % | 67,783 | 69,574 | 1,792 | 2.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Terminated term life face amount
|
(14,917 | ) | (13,139 | ) | (14,346 | ) | (15,329 | ) | (14,160 | ) | (12,759 | ) | (13,866 | ) | (14,177 | ) | 1,152 | 7.5 | % | (57,730 | ) | (54,962 | ) | 2,768 | 4.8 | % | ||||||||||||||||||||||||||||||
|
Foreign currency impact, net
|
(790 | ) | (719 | ) | (704 | ) | (3,383 | ) | (3,378 | ) | 3,166 | (4,272 | ) | (3,070 | ) | 314 |
nm
|
(5,596 | ) | (7,553 | ) | (1,958 | ) |
nm
|
||||||||||||||||||||||||||||||||
|
Term life face amount in-force, end of period
|
$ | 670,414 | $ | 674,355 | $ | 676,360 | $ | 674,868 | $ | 673,078 | $ | 681,978 | $ | 681,178 | $ | 681,927 | $ | 7,059 | 1.0 | % | $ | 674,868 | $ | 681,927 | $ | 7,059 | 1.0 | % | ||||||||||||||||||||||||||||
|
(1)
|
Estimated annualized issued term life premium - estimated as average premium per $1,000 of face amounts issued on new policies and additions (before free look returns) multiplied by actual face amount issued on new policies, rider additions and face amount increases.
|
|
(2)
|
In whole dollars
|
|
(3)
|
Issued term life face amount - includes face amount on issued term life policies, additional riders added to existing policies, and face increases under increasing benefit riders
|
10 of 16
| Term Life Insurance - New Term / Legacy Format of Financial Results |
PRIMERICA, INC.
Financial Supplement
|
|
YOY Q4
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 |
$
Change
|
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||||||||||||
| New Term Life Insurance Operating Income Before Income Taxes (1) |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct premiums
|
$ | 106,077 | $ | 114,407 | $ | 119,852 | $ | 125,394 | $ | 130,855 | $ | 139,973 | $ | 145,636 | $ | 150,916 | $ | 25,522 | 20.4 | % | $ | 465,730 | $ | 567,380 | $ | 101,649 | 21.8 | % | ||||||||||||||||||||||||||||
|
Ceded premiums
|
(18,577 | ) | (20,927 | ) | (18,937 | ) | (19,934 | ) | (23,400 | ) | (25,838 | ) | (24,248 | ) | (24,765 | ) | (4,831 | ) | -24.2 | % | (78,376 | ) | (98,252 | ) | (19,876 | ) | -25.4 | % | ||||||||||||||||||||||||||||
|
Net premiums
|
87,501 | 93,479 | 100,915 | 105,460 | 107,455 | 114,135 | 121,388 | 126,151 | 20,691 | 19.6 | % | 387,355 | 469,128 | 81,773 | 21.1 | % | ||||||||||||||||||||||||||||||||||||||||
|
Allocated net investment income
|
3,513 | 3,941 | 4,438 | 5,055 | 5,182 | 5,734 | 6,023 | 7,154 | 2,099 | 41.5 | % | 16,946 | 24,093 | 7,147 | 42.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Other, net
|
6,957 | 7,366 | 7,304 | 7,128 | 6,924 | 7,315 | 7,311 | 7,252 | 124 | 1.7 | % | 28,755 | 28,801 | 46 | 0.2 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
97,971 | 104,786 | 112,657 | 117,643 | 119,561 | 127,183 | 134,721 | 140,557 | 22,914 | 19.5 | % | 433,056 | 522,022 | 88,966 | 20.5 | % | ||||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Benefits and claims
|
32,124 | 33,764 | 39,105 | 40,357 | 40,597 | 40,773 | 47,049 | 48,319 | 7,962 | 19.7 | % | 145,350 | 176,737 | 31,387 | 21.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
17,759 | 17,091 | 20,417 | 23,817 | 23,470 | 21,267 | 24,943 | 27,295 | 3,478 | 14.6 | % | 79,084 | 96,974 | 17,890 | 22.6 | % | ||||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
817 | 691 | 493 | 573 | 911 | 534 | 648 | 359 | (214 | ) | -37.4 | % | 2,574 | 2,452 | (122 | ) | -4.7 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expenses
|
31,613 | 32,550 | 33,040 | 33,567 | 34,961 | 34,935 | 38,690 | 34,952 | 1,385 | 4.1 | % | 130,770 | 143,538 | 12,768 | 9.8 | % | ||||||||||||||||||||||||||||||||||||||||
|
Interest expense
|
361 | 403 | 422 | 464 | 483 | 511 | 735 | 860 | 397 | 85.6 | % | 1,649 | 2,590 | 941 | 57.1 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
82,674 | 84,499 | 93,477 | 98,777 | 100,422 | 98,020 | 112,064 | 111,785 | 13,008 | 13.2 | % | 359,427 | 422,291 | 62,864 | 17.5 | % | ||||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | 15,296 | $ | 20,287 | $ | 19,180 | $ | 18,866 | $ | 19,138 | $ | 29,163 | $ | 22,657 | $ | 28,772 | $ | 9,906 | 52.5 | % | $ | 73,630 | $ | 99,731 | $ | 26,102 | 35.4 | % | ||||||||||||||||||||||||||||
|
New Term Life Insurance - Financial Analysis (1)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct premium
|
$ | 106,077 | $ | 114,407 | $ | 119,852 | $ | 125,394 | $ | 130,855 | $ | 139,973 | $ | 145,636 | $ | 150,916 | 25,522 | 20.4 | % | 465,730 | 567,380 | 101,649 | 21.8 | % | ||||||||||||||||||||||||||||||||
|
New term life operating income before income taxes
|
$ | 15,296 | $ | 20,287 | $ | 19,180 | $ | 18,866 | $ | 19,138 | $ | 29,163 | $ | 22,657 | $ | 28,772 | 9,906 | 52.5 | % | 73,630 | 99,731 | 26,102 | 35.4 | % | ||||||||||||||||||||||||||||||||
|
% of direct premium
|
14.4 | % | 17.7 | % | 16.0 | % | 15.0 | % | 14.6 | % | 20.8 | % | 15.6 | % | 19.1 | % |
nm
|
nm
|
15.8 | % | 17.6 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
Benefits & expenses, net (2)
|
$ | 69,277 | $ | 72,474 | $ | 78,952 | $ | 84,680 | $ | 88,377 | $ | 88,412 | $ | 96,888 | $ | 100,738 | 16,058 | 19.0 | % | 305,383 | 374,415 | 69,032 | 22.6 | % | ||||||||||||||||||||||||||||||||
|
% of direct premium
|
65.3 | % | 63.3 | % | 65.9 | % | 67.5 | % | 67.5 | % | 63.2 | % | 66.5 | % | 66.8 | % |
nm
|
nm
|
65.6 | % | 66.0 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
|
Insurance expenses, net (3)
|
$ | 24,656 | $ | 25,184 | $ | 25,736 | $ | 26,439 | $ | 28,038 | $ | 27,620 | $ | 31,379 | $ | 27,700 | 1,261 | 4.8 | % | 102,015 | 114,736 | 12,721 | 12.5 | % | ||||||||||||||||||||||||||||||||
|
% of direct premium
|
23.2 | % | 22.0 | % | 21.5 | % | 21.1 | % | 21.4 | % | 19.7 | % | 21.5 | % | 18.4 | % |
nm
|
nm
|
21.9 | % | 20.2 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
| Legacy Term Life Insurance Operating Income Before Income Taxes (4) |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct premiums
|
$ | 445,957 | $ | 444,628 | $ | 437,634 | $ | 435,255 | $ | 428,809 | $ | 427,876 | $ | 422,956 | $ | 419,629 | $ | (15,626 | ) | -3.6 | % | $ | 1,763,473 | $ | 1,699,269 | $ | (64,204 | ) | -3.6 | % | ||||||||||||||||||||||||||
|
Ceded premiums
|
(389,277 | ) | (393,294 | ) | (385,522 | ) | (385,572 | ) | (376,934 | ) | (381,728 | ) | (375,338 | ) | (373,713 | ) | 11,859 | 3.1 | % | (1,553,666 | ) | (1,507,713 | ) | 45,953 | 3.0 | % | ||||||||||||||||||||||||||||||
|
Net premiums
|
56,679 | 51,334 | 52,112 | 49,682 | 51,875 | 46,148 | 47,617 | 45,916 | (3,766 | ) | -7.6 | % | 209,807 | 191,556 | (18,251 | ) | -8.7 | % | ||||||||||||||||||||||||||||||||||||||
|
Allocated net investment income
|
13,156 | 12,994 | 12,947 | 12,752 | 11,531 | 11,105 | 11,212 | 11,832 | (920 | ) | -7.2 | % | 51,849 | 45,680 | (6,170 | ) | -11.9 | % | ||||||||||||||||||||||||||||||||||||||
|
Other, net
|
27 | 70 | 96 | 70 | 14 | (69 | ) | 27 | 65 | (5 | ) | -7.1 | % | 262 | 36 | (226 | ) | -86.2 | % | |||||||||||||||||||||||||||||||||||||
|
Operating revenues
|
69,863 | 64,397 | 65,155 | 62,504 | 63,420 | 57,183 | 58,856 | 57,813 | (4,691 | ) | -7.5 | % | 261,919 | 237,272 | (24,647 | ) | -9.4 | % | ||||||||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Benefits and claims
|
33,422 | 27,925 | 28,683 | 26,977 | 30,666 | 27,514 | 30,673 | 29,741 | 2,763 | 10.2 | % | 117,007 | 118,595 | 1,588 | 1.4 | % | ||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
10,105 | 8,686 | 9,262 | 8,753 | 9,252 | 8,511 | 9,228 | 9,366 | 613 | 7.0 | % | 36,807 | 36,357 | (449 | ) | -1.2 | % | |||||||||||||||||||||||||||||||||||||||
|
Insurance commissions
|
383 | 371 | 408 | 865 | 404 | 395 | 421 | 331 | (534 | ) | -61.7 | % | 2,026 | 1,551 | (475 | ) | -23.4 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expenses
|
9,128 | 8,598 | 8,490 | 7,203 | 7,664 | 7,384 | 7,666 | 6,615 | (589 | ) | -8.2 | % | 33,419 | 29,328 | (4,090 | ) | -12.2 | % | ||||||||||||||||||||||||||||||||||||||
|
Insurance expense allowance
|
(16,896 | ) | (16,640 | ) | (16,405 | ) | (16,168 | ) | (16,212 | ) | (16,025 | ) | (15,842 | ) | (15,589 | ) | 579 | 3.6 | % | (66,108 | ) | (63,668 | ) | 2,440 | 3.7 | % | ||||||||||||||||||||||||||||||
|
Interest expense
|
3,892 | 3,847 | 3,761 | 3,698 | 3,580 | 3,498 | 3,433 | 3,296 | (402 | ) | -10.9 | % | 15,197 | 13,806 | (1,391 | ) | -9.2 | % | ||||||||||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
40,034 | 32,786 | 34,199 | 31,329 | 35,354 | 31,276 | 35,580 | 33,759 | 2,431 | 7.8 | % | 138,348 | 135,970 | (2,378 | ) | -1.7 | % | |||||||||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$ | 29,829 | $ | 31,611 | $ | 30,956 | $ | 31,176 | $ | 28,066 | $ | 25,907 | $ | 23,275 | $ | 24,054 | $ | (7,122 | ) | -22.8 | % | $ | 123,571 | $ | 101,302 | $ | (22,269 | ) | -18.0 | % | ||||||||||||||||||||||||||
|
Legacy Term Life Insurance - Financial Analysis (4)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Direct premium
|
$ | 445,957 | $ | 444,628 | $ | 437,634 | $ | 435,255 | $ | 428,809 | $ | 427,876 | $ | 422,956 | $ | 419,629 | (15,626 | ) | -3.6 | % | 1,763,473 | 1,699,269 | (64,204 | ) | -3.6 | % | ||||||||||||||||||||||||||||||
|
Legacy term life operating income before income taxes
|
$ | 29,829 | $ | 31,611 | $ | 30,956 | $ | 31,176 | $ | 28,066 | $ | 25,907 | $ | 23,275 | $ | 24,054 | (7,122 | ) | -22.8 | % | 123,571 | 101,302 | (22,269 | ) | -18.0 | % | ||||||||||||||||||||||||||||||
|
% of direct premium
|
6.7 | % | 7.1 | % | 7.1 | % | 7.2 | % | 6.5 | % | 6.1 | % | 5.5 | % | 5.7 | % |
nm
|
nm
|
7.0 | % | 6.0 | % |
nm
|
nm
|
||||||||||||||||||||||||||||||||
| (1) |
Represents results associated with business not subject to the 2010 Citi reinsurance transactions.
|
| (2) |
Benefits & expenses, net - includes total benefits & claims, ceded premiums, insurance commissions, and amortization of deferred policy acquisition costs
|
| (3) |
Insurance expenses, net - insurance expenses, net of other net revenues
|
| (4) |
Represents results associated with business subject to the 2010 Citi reinsurance transactions.
|
11 of 16
| Investment and Savings Products - Financial Results, Key Statistics, and Financial Analysis |
PRIMERICA, INC.
Financial Supplement
|
|
(Dollars in thousands, except as noted)
|
YOY Q4
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||
|
Investment & Savings Products Operating Income Before Income Taxes
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
$ Change |
%
Change
|
YTD
2013
|
YTD
2014
|
$
Change
|
%
Change
|
|||||||||||||||||||||||||||||||||||
|
Revenues:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Commissions and fees:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based
|
$
|
49,656
|
$
|
52,108
|
$
|
51,934
|
$
|
54,386
|
$
|
57,904
|
$
|
60,255
|
$
|
58,394
|
$
|
61,204
|
$
|
6,818
|
12.5
|
%
|
$
|
208,085
|
$
|
237,758
|
$
|
29,673
|
14.3
|
%
|
|||||||||||||||||||||
|
Asset-based
|
47,490
|
49,492
|
51,037
|
53,493
|
53,807
|
56,114
|
58,744
|
57,134
|
3,641
|
6.8
|
%
|
201,511
|
225,799
|
24,288
|
12.1
|
%
|
|||||||||||||||||||||||||||||||||
|
Account-based
|
9,453
|
9,588
|
9,811
|
10,010
|
9,720
|
9,957
|
10,251
|
10,548
|
539
|
5.4
|
%
|
38,862
|
40,477
|
1,614
|
4.2
|
%
|
|||||||||||||||||||||||||||||||||
|
Other, net
|
2,122
|
2,173
|
1,941
|
2,444
|
1,839
|
1,821
|
1,884
|
2,497
|
52
|
2.1
|
%
|
8,680
|
8,040
|
(640
|
)
|
-7.4
|
%
|
||||||||||||||||||||||||||||||||
|
Operating revenues
|
108,721
|
113,361
|
114,723
|
120,333
|
123,270
|
128,147
|
129,273
|
131,383
|
11,050
|
9.2
|
%
|
457,138
|
512,073
|
54,935
|
12.0
|
%
|
|||||||||||||||||||||||||||||||||
|
Benefits and expenses:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Amortization of DAC
|
2,892
|
3,876
|
2,542
|
1,885
|
2,335
|
2,172
|
2,484
|
1,743
|
(143
|
)
|
-7.6
|
%
|
11,195
|
8,734
|
(2,462
|
)
|
-22.0
|
%
|
|||||||||||||||||||||||||||||||
|
Insurance commissions
|
2,274
|
2,331
|
2,249
|
2,193
|
2,086
|
2,237
|
2,290
|
2,185
|
(8
|
)
|
-0.4
|
%
|
9,046
|
8,799
|
(247
|
)
|
-2.7
|
%
|
|||||||||||||||||||||||||||||||
|
Sales commissions:
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based
|
35,373
|
36,702
|
36,266
|
38,190
|
41,563
|
42,702
|
41,193
|
42,749
|
4,559
|
11.9
|
%
|
146,531
|
168,207
|
21,676
|
14.8
|
%
|
|||||||||||||||||||||||||||||||||
|
Asset-based
|
16,668
|
17,807
|
18,805
|
19,988
|
20,725
|
21,859
|
23,378
|
23,011
|
3,024
|
15.1
|
%
|
73,267
|
88,974
|
15,707
|
21.4
|
%
|
|||||||||||||||||||||||||||||||||
|
Other operating expenses
|
25,162
|
24,971
|
23,362
|
22,716
|
22,532
|
23,131
|
23,024
|
22,655
|
(60
|
)
|
-0.3
|
%
|
96,211
|
91,342
|
(4,869
|
)
|
-5.1
|
%
|
|||||||||||||||||||||||||||||||
|
Operating benefits and expenses
|
82,368
|
85,686
|
83,224
|
84,972
|
89,243
|
92,100
|
92,369
|
92,344
|
7,372
|
8.7
|
%
|
336,251
|
366,056
|
29,805
|
8.9
|
%
|
|||||||||||||||||||||||||||||||||
|
Operating income before income taxes
|
$
|
26,353
|
$
|
27,675
|
$
|
31,498
|
$
|
35,361
|
$
|
34,028
|
$
|
36,047
|
$
|
36,904
|
$
|
39,039
|
$
|
3,678
|
10.4
|
%
|
$
|
120,888
|
$
|
146,017
|
$
|
25,129
|
20.8
|
%
|
|||||||||||||||||||||
|
Key Statistics
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Product sales ($mills)
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Retail Mutual Funds
|
$
|
711.9
|
$
|
722.7
|
$
|
648.2
|
$
|
683.3
|
$
|
821.4
|
$
|
820.9
|
$
|
762.8
|
$
|
804.4
|
$
|
121.2
|
17.7
|
%
|
$
|
2,766.0
|
$
|
3,209.6
|
$
|
443.5
|
16.0
|
%
|
|||||||||||||||||||||
|
Indexed Annuities
|
92.9
|
111.7
|
104.4
|
104.0
|
84.2
|
84.7
|
62.0
|
54.0
|
(50.0
|
)
|
-48.1
|
%
|
413.0
|
284.9
|
(128.1
|
)
|
-31.0
|
%
|
|||||||||||||||||||||||||||||||
|
Variable Annuities and other
|
388.1
|
361.5
|
388.0
|
384.3
|
365.8
|
417.1
|
434.2
|
469.4
|
85.1
|
22.1
|
%
|
1,522.0
|
1,686.4
|
164.4
|
10.8
|
%
|
|||||||||||||||||||||||||||||||||
|
Total sales-based revenue generating product sales
|
1,193.0
|
1,195.9
|
1,140.6
|
1,171.5
|
1,271.4
|
1,322.7
|
1,259.0
|
1,327.8
|
156.3
|
13.3
|
%
|
4,701.1
|
5,180.9
|
479.8
|
10.2
|
%
|
|||||||||||||||||||||||||||||||||
|
Managed Accounts
|
56.7
|
57.5
|
57.1
|
53.8
|
62.8
|
65.3
|
66.3
|
63.9
|
10.0
|
18.6
|
%
|
225.1
|
258.3
|
33.2
|
14.7
|
%
|
|||||||||||||||||||||||||||||||||
|
Segregated Funds
|
115.6
|
64.3
|
51.0
|
51.7
|
76.6
|
51.1
|
51.2
|
64.1
|
12.4
|
24.0
|
%
|
282.6
|
243.1
|
(39.5
|
)
|
-14.0
|
%
|
||||||||||||||||||||||||||||||||
|
Total product sales
|
$
|
1,365.3
|
$
|
1,317.7
|
$
|
1,248.7
|
$
|
1,277.1
|
$
|
1,410.8
|
$
|
1,439.2
|
$
|
1,376.5
|
$
|
1,455.8
|
$
|
178.7
|
14.0
|
%
|
$
|
5,208.8
|
$
|
5,682.3
|
$
|
473.5
|
9.1
|
%
|
|||||||||||||||||||||
|
Client asset values, beginning of period ($mills)
|
$
|
37,386
|
$
|
39,853
|
$
|
40,166
|
$
|
42,177
|
$
|
44,990
|
$
|
45,839
|
$
|
48,008
|
$
|
47,399
|
$
|
5,222
|
12.4
|
%
|
$
|
37,386
|
$
|
44,990
|
$
|
7,604
|
20.3
|
%
|
|||||||||||||||||||||
|
Inflows
|
1,365
|
1,318
|
1,249
|
1,277
|
1,411
|
1,439
|
1,377
|
1,456
|
179
|
14.0
|
%
|
5,209
|
5,682
|
474
|
9.1
|
%
|
|||||||||||||||||||||||||||||||||
|
Outflows (1)
|
(1,283
|
)
|
(1,165
|
)
|
(1,140
|
)
|
(1,146
|
)
|
(1,246
|
)
|
(1,211
|
)
|
(1,206
|
)
|
(1,161
|
)
|
(14
|
)
|
-1.3
|
%
|
(4,733
|
)
|
(4,823
|
)
|
(90
|
)
|
-1.9
|
%
|
|||||||||||||||||||||
|
Net flows
|
82
|
153
|
109
|
131
|
165
|
228
|
171
|
295
|
164
|
nm
|
475
|
859
|
383
|
nm
|
|||||||||||||||||||||||||||||||||||
|
Foreign currency impact, net
|
(162
|
)
|
(310
|
)
|
215
|
(272
|
)
|
(321
|
)
|
313
|
(432
|
)
|
(309
|
)
|
(37
|
)
|
nm
|
(529
|
)
|
(748
|
)
|
(219
|
)
|
nm
|
|||||||||||||||||||||||||
|
Change in market value, net and other (2)
|
2,546
|
470
|
1,686
|
2,954
|
1,005
|
1,628
|
(348
|
)
|
1,270
|
(1,684
|
)
|
nm
|
7,657
|
3,555
|
(4,102
|
)
|
nm
|
||||||||||||||||||||||||||||||||
|
Client asset values, end of period
|
$
|
39,853
|
$
|
40,166
|
$
|
42,177
|
$
|
44,990
|
$
|
45,839
|
$
|
48,008
|
$
|
47,399
|
$
|
48,656
|
$
|
3,666
|
8.1
|
%
|
$
|
44,990
|
$
|
48,656
|
$
|
3,666
|
8.1
|
%
|
|||||||||||||||||||||
|
Annualized net flows as % of beginning of period asset values
|
0.9
|
%
|
1.5
|
%
|
1.1
|
%
|
1.2
|
%
|
1.5
|
%
|
2.0
|
%
|
1.4
|
%
|
2.5
|
%
|
1.2
|
%
|
nm
|
1.3
|
%
|
1.9
|
%
|
0.6
|
%
|
nm
|
|||||||||||||||||||||||
|
Average client asset values ($mills)
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Retail Mutual Funds
|
$
|
25,170
|
$
|
26,041
|
$
|
26,478
|
$
|
28,122
|
$
|
28,842
|
$
|
29,829
|
$
|
30,457
|
$
|
30,628
|
$
|
2,507
|
8.9
|
%
|
$
|
26,453
|
$
|
29,939
|
$
|
3,486
|
13.2
|
%
|
|||||||||||||||||||||
|
Managed Accounts
|
652
|
786
|
882
|
1,004
|
1,095
|
1,203
|
1,287
|
1,369
|
365
|
36.3
|
%
|
831
|
1,238
|
407
|
49.0
|
%
|
|||||||||||||||||||||||||||||||||
|
Indexed Annuities
|
441
|
545
|
648
|
750
|
839
|
921
|
986
|
1,035
|
285
|
38.1
|
%
|
596
|
945
|
349
|
58.6
|
%
|
|||||||||||||||||||||||||||||||||
|
Variable Annuities and other
|
9,869
|
10,352
|
10,687
|
11,410
|
11,839
|
12,152
|
12,548
|
12,748
|
1,338
|
11.7
|
%
|
10,579
|
12,322
|
1,742
|
16.5
|
%
|
|||||||||||||||||||||||||||||||||
|
Segregated Funds
|
2,624
|
2,601
|
2,529
|
2,546
|
2,449
|
2,507
|
2,547
|
2,462
|
(84
|
)
|
-3.3
|
%
|
2,575
|
2,491
|
(84
|
)
|
-3.3
|
%
|
|||||||||||||||||||||||||||||||
|
Total
|
$
|
38,756
|
$
|
40,326
|
$
|
41,225
|
$
|
43,832
|
$
|
45,063
|
$
|
46,611
|
$
|
47,825
|
$
|
48,243
|
$
|
4,411
|
10.1
|
%
|
$
|
41,035
|
$
|
46,936
|
$
|
5,901
|
14.4
|
%
|
|||||||||||||||||||||
|
Average number of fee-
generating accounts (thous) (3)
|
|
||||||||||||||||||||||||||||||||||||||||||||||||
|
Recordkeeping and custodial accounts
|
1,940
|
1,946
|
1,955
|
1,975
|
1,991
|
2,011
|
2,026
|
2,034
|
59
|
3.0
|
%
|
1,954
|
2,015
|
61
|
3.1
|
%
|
|||||||||||||||||||||||||||||||||
|
Recordkeeping only accounts
|
596
|
576
|
582
|
590
|
596
|
604
|
611
|
616
|
26
|
4.4
|
%
|
586
|
607
|
21
|
3.5
|
%
|
|||||||||||||||||||||||||||||||||
|
Total
|
2,536
|
2,522
|
2,537
|
2,566
|
2,587
|
2,614
|
2,636
|
2,651
|
85
|
3.3
|
%
|
2,540
|
2,622
|
82
|
3.2
|
%
|
|||||||||||||||||||||||||||||||||
|
Financial Analysis
|
|||||||||||||||||||||||||||||||||||||||||||||||||
|
Sales-based net revenue as % of revenue-generating sales (4)
|
1.20
|
%
|
1.29
|
%
|
1.37
|
%
|
1.38
|
%
|
1.29
|
%
|
1.33
|
%
|
1.37
|
%
|
1.39
|
%
|
nm
|
nm
|
|
1.31
|
% |
|
1.34
|
%
|
nm
|
nm
|
|||||||||||||||||||||||
|
Asset-based net revenue as % of average asset values (5)
|
0.07
|
%
|
0.06
|
%
|
0.07
|
%
|
0.07
|
%
|
0.06
|
%
|
0.06
|
%
|
0.06
|
%
|
0.06
|
%
|
nm
|
nm
|
|
0.26
|
% |
|
0.25
|
% |
nm
|
nm
|
|||||||||||||||||||||||
|
Account-based revenue per average fee generating account (6)
|
$
|
3.73
|
$
|
3.80
|
$
|
3.87
|
$
|
3.90
|
$
|
3.76
|
$
|
3.81
|
$
|
3.89
|
$
|
3.98
|
nm
|
nm
|
$
|
15.30
|
|
$
|
15.44
|
nm
|
nm
|
||||||||||||||||||||||||
|
(1)
|
Asset value outflows - include (a) redemptions of assets, (b) sales charges on the inflow sales figures, and (c) the net flow of money market funds sold and redeemed on the company's recordkeeping platform. The redemptions of assets must be estimated for approximately 4% of account values as these figures are not readily available. Actual redemptions as a percentage of account values for similar known account values are used to estimate the unknown redemption values.
|
|
(2)
|
Change in market value, net - market value fluctuations net of fees and expenses
|
|
(3)
|
Fee generating accounts - mutual fund accounts for which we receive recording keeping and/or custodial fees
|
|
(4)
|
Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity
|
|
(5)
|
Asset-based net revenue - commission and fee revenue less commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds
|
|
(6)
|
In whole dollars
|
12 of 16
|
Investment Portfolio - Summary of Holdings
|
PRIMERICA, INC.
Financial Supplement
|
|
As of or for the period ended December 31, 2014
|
||||||||||||||||||||||||||||
|
% of Total
|
Avg
|
|||||||||||||||||||||||||||
|
Market
|
Amortized
|
Unrealized
|
Market
|
Amortized
|
Book
|
Avg
|
||||||||||||||||||||||
|
(Dollars in thousands)
|
Value
|
Cost
|
G/(L) |
Value
|
Cost
|
Yield
|
Rating
|
|||||||||||||||||||||
|
Investment Portfolio by Asset Class
|
||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 191,716 | $ | 191,716 | $ | - | 9.5 | % | 10.0 | % | ||||||||||||||||||
|
Fixed Income:
|
||||||||||||||||||||||||||||
|
Treasury
|
35,705 | 36,125 | (420 | ) | 1.8 | % | 1.9 | % | 2.52 | % |
AAA
|
|||||||||||||||||
|
Government
|
140,303 | 135,178 | 5,125 | 7.0 | % | 7.1 | % | 4.28 | % |
AA-
|
||||||||||||||||||
|
Tax-Exempt Municipal
|
5,002 | 5,001 | 0 | 0.2 | % | 0.3 | % | 3.26 | % | A- | ||||||||||||||||||
|
Corporate
|
1,209,238 | 1,139,638 | 69,600 | 60.1 | % | 59.6 | % | 4.92 | % |
BBB+
|
||||||||||||||||||
|
Mortgage-Backed
|
117,597 | 108,506 | 9,091 | 5.8 | % | 5.7 | % | 4.85 | % |
AAA
|
||||||||||||||||||
|
Asset-Backed
|
71,220 | 71,145 | 75 | 3.5 | % | 3.7 | % | 0.91 | % |
AA+
|
||||||||||||||||||
|
CMBS
|
77,287 | 73,795 | 3,493 | 3.8 | % | 3.9 | % | 3.62 | % |
AAA
|
||||||||||||||||||
|
Private
|
104,873 | 100,425 | 4,448 | 5.2 | % | 5.3 | % | 5.10 | % |
BBB
|
||||||||||||||||||
|
Redeemable Preferred
|
2,694 | 2,844 | (151 | ) | 0.1 | % | 0.1 | % | 15.08 | % |
BBB+
|
|||||||||||||||||
|
Convertible
|
2,911 | 2,553 | 359 | 0.1 | % | 0.1 | % | 4.91 | % |
BBB+
|
||||||||||||||||||
|
Total Fixed Income
|
1,766,830 | 1,675,210 | 91,620 | 87.8 | % | 87.7 | % | 4.61 | % | A | ||||||||||||||||||
|
Equities:
|
||||||||||||||||||||||||||||
|
Perpetual Preferred
|
15,992 | 15,052 | 941 | 0.8 | % | 0.8 | % | |||||||||||||||||||||
|
Common Stock
|
23,338 | 16,740 | 6,599 | 1.2 | % | 0.9 | % | |||||||||||||||||||||
|
Mutual Fund
|
8,281 | 6,169 | 2,112 | 0.4 | % | 0.3 | % | |||||||||||||||||||||
|
Other
|
5,778 | 5,778 | 0 | 0.3 | % | 0.3 | % | |||||||||||||||||||||
|
Total Equities
|
53,390 | 43,738 | 9,652 | 2.7 | % | 2.3 | % | |||||||||||||||||||||
|
Total Invested Assets
|
$ | 2,011,936 | $ | 1,910,665 | $ | 101,271 | 100.0 | % | 100.0 | % | ||||||||||||||||||
|
Corporate Portfolio by Sector
|
||||||||||||||||||||||||||||
|
Energy
|
$ | 148,184 | $ | 143,240 | $ | 4,943 | 12.3 | % | 12.6 | % | ||||||||||||||||||
|
Consumer Non Cyclical
|
136,059 | 126,923 | 9,136 | 11.3 | % | 11.1 | % | |||||||||||||||||||||
|
Reits
|
131,285 | 123,678 | 7,606 | 10.9 | % | 10.9 | % | |||||||||||||||||||||
|
Basic Industry
|
105,012 | 99,312 | 5,700 | 8.7 | % | 8.7 | % | |||||||||||||||||||||
|
Banking
|
100,442 | 97,995 | 2,447 | 8.3 | % | 8.6 | % | |||||||||||||||||||||
|
Electric
|
102,688 | 93,081 | 9,607 | 8.5 | % | 8.2 | % | |||||||||||||||||||||
|
Technology
|
84,416 | 80,550 | 3,866 | 7.0 | % | 7.1 | % | |||||||||||||||||||||
|
Insurance
|
80,326 | 73,909 | 6,417 | 6.6 | % | 6.5 | % | |||||||||||||||||||||
|
Capital Goods
|
74,191 | 68,826 | 5,365 | 6.1 | % | 6.0 | % | |||||||||||||||||||||
|
Communications
|
71,610 | 66,454 | 5,156 | 5.9 | % | 5.8 | % | |||||||||||||||||||||
|
Consumer Cyclical
|
50,747 | 48,084 | 2,663 | 4.2 | % | 4.2 | % | |||||||||||||||||||||
|
Transportation
|
39,388 | 38,189 | 1,198 | 3.3 | % | 3.4 | % | |||||||||||||||||||||
|
Brokerage
|
25,898 | 24,062 | 1,836 | 2.1 | % | 2.1 | % | |||||||||||||||||||||
|
Finance Companies
|
18,812 | 17,219 | 1,593 | 1.6 | % | 1.5 | % | |||||||||||||||||||||
|
Industrial Other
|
17,971 | 17,114 | 857 | 1.5 | % | 1.5 | % | |||||||||||||||||||||
|
Natural Gas
|
12,938 | 11,910 | 1,028 | 1.1 | % | 1.0 | % | |||||||||||||||||||||
|
Financial Other
|
9,271 | 9,092 | 179 | 0.8 | % | 0.8 | % | |||||||||||||||||||||
|
Total Corporate portfolio
|
$ | 1,209,238 | $ | 1,139,638 | $ | 69,600 | 100.0 | % | 100.0 | % | ||||||||||||||||||
|
Error
|
Error
|
|||||||||||||||||||||||||||
| Fixed-Maturity Securities - Effective Maturity |
|
|||||||||||||||||||||||||||
|
Effective maturity
|
||||||||||||||||||||||||||||
|
< 1 Yr.
|
$ | 173,455 | $ | 172,048 | $ | 1,407 | 9.8 | % | 10.3 | % | 3.25 | % | ||||||||||||||||
|
1-2 Yrs.
|
116,689 | 114,600 | 2,089 | 6.6 | % | 6.8 | % | 4.18 | % | |||||||||||||||||||
|
2-5 Yrs.
|
672,788 | 616,556 | 56,232 | 38.1 | % | 36.8 | % | 5.34 | % | |||||||||||||||||||
|
5-10 Yrs.
|
750,879 | 723,428 | 27,451 | 42.5 | % | 43.2 | % | 4.34 | % | |||||||||||||||||||
|
> 10 Yrs.
|
53,019 | 48,578 | 4,441 | 3.0 | % | 2.9 | % | 5.01 | % | |||||||||||||||||||
|
Total Fixed Income
|
$ | 1,766,830 | $ | 1,675,210 | $ | 91,620 | 100.0 | % | 100.0 | % | 4.61 | % | ||||||||||||||||
|
Duration
|
||||||||||||||||||||||||||||
|
Fixed Income portfolio duration
|
4.2 |
years
|
||||||||||||||||||||||||||
| Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet. | ||||||||||||||||||||||||||||
13 of 16
|
Investment Portfolio - Quality Ratings As of December 31, 2014
|
PRIMERICA, INC.
Financial Supplement
|
|
(Dollars in thousands)
|
||||||||||||||||||
|
Investment Portfolio Quality Ratings (1)
|
||||||||||||||||||
|
Amortized
Cost
|
% of
Total
|
|||||||||||||||||
|
Total Fixed Income portfolio:
|
||||||||||||||||||
|
Rating
|
||||||||||||||||||
|
AAA
|
$
|
292,239
|
17.4
|
%
|
||||||||||||||
|
AA
|
117,423
|
7.0
|
%
|
|||||||||||||||
| A |
375,781
|
22.4
|
%
|
|||||||||||||||
|
BBB
|
804,765
|
48.0
|
%
|
|||||||||||||||
|
Below Investment Grade
|
84,498
|
5.0
|
%
|
|||||||||||||||
|
NA
|
505
|
0.0
|
%
|
|||||||||||||||
|
Total Fixed Income
|
$
|
1,675,210
|
100.0
|
%
|
||||||||||||||
|
Amortized
Cost
|
% of
Total
|
Amortized
Cost
|
% of
Total
|
|||||||||||||||
|
Corporate asset class:
|
Private asset class:
|
|||||||||||||||||
|
Rating
|
Rating
|
|||||||||||||||||
|
AAA
|
$
|
4,317
|
0.4
|
%
|
AAA
|
$
|
62
|
0.1
|
%
|
|||||||||
|
AA
|
54,622
|
4.8
|
%
|
AA
|
4,151
|
4.1
|
%
|
|||||||||||
| A |
313,706
|
27.5
|
%
|
A
|
1,263
|
1.3
|
%
|
|||||||||||
|
BBB
|
695,515
|
61.0
|
%
|
BBB
|
87,764
|
87.4
|
%
|
|||||||||||
|
Below Investment Grade
|
71,300
|
6.3
|
%
|
Below Investment Grade
|
7,185
|
7.2
|
%
|
|||||||||||
|
NA
|
178
|
0.0
|
%
|
NA
|
-
|
—
|
||||||||||||
|
Total Corporate
|
$
|
1,139,638
|
100.0
|
%
|
Total Private
|
$
|
100,425
|
100.0
|
%
|
|||||||||
|
CMBS asset class:
|
Mortgage-Backed asset class:
|
|||||||||||||||||
|
Rating
|
Rating
|
|||||||||||||||||
|
AAA
|
$
|
65,826
|
89.2
|
%
|
AAA
|
$
|
102,235
|
94.2
|
%
|
|||||||||
|
AA
|
1,770
|
2.4
|
%
|
AA
|
2,759
|
2.5
|
%
|
|||||||||||
| A |
2,582
|
3.5
|
%
|
A
|
1,432
|
1.3
|
%
|
|||||||||||
|
BBB
|
2,359
|
3.2
|
%
|
BBB
|
2,081
|
1.9
|
%
|
|||||||||||
|
Below Investment Grade
|
1,257
|
1.7
|
%
|
Below Investment Grade
|
-
|
—
|
||||||||||||
|
NA
|
0
|
0.0
|
%
|
NA
|
-
|
—
|
||||||||||||
|
Total CMBS
|
$
|
73,795
|
100.0
|
%
|
Total Mortgage-Backed
|
$
|
108,506
|
100.0
|
%
|
|||||||||
|
Asset-Backed asset class:
|
Treasury & Government asset classes:
|
|||||||||||||||||
|
Rating
|
Rating
|
|||||||||||||||||
|
AAA
|
$
|
55,397
|
77.9
|
%
|
AAA
|
$
|
63,815
|
37.3
|
%
|
|||||||||
|
AA
|
1,608
|
2.3
|
%
|
AA
|
53,241
|
31.1
|
%
|
|||||||||||
| A |
13,605
|
19.1
|
%
|
A
|
40,886
|
23.9
|
%
|
|||||||||||
|
BBB
|
144
|
0.2
|
%
|
BBB
|
13,362
|
7.8
|
%
|
|||||||||||
|
Below Investment Grade
|
391
|
0.5
|
%
|
Below Investment Grade
|
-
|
—
|
||||||||||||
|
NA
|
-
|
—
|
NA
|
-
|
—
|
|||||||||||||
|
Total Asset-Backed
|
$
|
71,145
|
100.0
|
%
|
Total Treasury & Government
|
$
|
171,303
|
100.0
|
%
|
|||||||||
|
NAIC Designations
|
||||||||||||||||||
| 1 |
$
|
561,287
|
42.2
|
%
|
||||||||||||||
| 2 |
697,062
|
52.4
|
%
|
|||||||||||||||
| 3 |
53,615
|
4.0
|
%
|
|||||||||||||||
| 4 |
17,540
|
1.3
|
%
|
|||||||||||||||
| 5 |
154
|
0.0
|
%
|
|||||||||||||||
| 6 |
155
|
0.0
|
%
|
|||||||||||||||
|
U.S. Insurer Fixed Income (2)
|
1,329,814
|
100.0
|
%
|
|||||||||||||||
|
Other (3)
|
389,135
|
|||||||||||||||||
|
Cash and cash equivalents
|
191,716
|
|||||||||||||||||
|
Total Invested Assets
|
$
|
1,910,665
|
||||||||||||||||
| (1) |
Ratings method for split ratings: If by 2 NRSROs, use lower of the two; if by 3 or more NRSROs, use second lowest
|
||
| (2) |
NAIC ratings for our U.S. insurance companies' fixed income portfolios
|
||
| (3) |
Other consists of assets held by our non-life companies, Canadian insurance company, and unrated equities
|
||
|
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.
|
|||
14 of 16
|
Investment Portfolio - Supplemental Data and Trends
|
PRIMERICA, INC.
Financial Supplement
|
|
YOY Q4
|
||||||||||||||||||||||||||||||||||||||||||
|
(Dollars in thousands)
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4
2014
|
$
Change
|
%
Change
|
||||||||||||||||||||||||||||||||
| Net Investment Income by Source | ||||||||||||||||||||||||||||||||||||||||||
|
Fixed-maturity securities (available-for-sale)
|
$ | 23,210 | $ | 22,648 | $ | 21,785 | $ | 22,217 | $ | 21,032 | $ | 20,454 | $ | 20,933 | $ | 22,268 | 51 | 0.2 | % | |||||||||||||||||||||||
|
Fixed-maturity securities (held-to-maturity)
|
- | - | - | - | - | - | 1,299 | 2,183 | 2,183 |
nm
|
||||||||||||||||||||||||||||||||
|
Equity Securities
|
272 | 292 | 277 | 345 | 385 | 471 | 450 | 556 | 211 | 61.2 | % | |||||||||||||||||||||||||||||||
|
Deposit asset underlying 10% reinsurance treaty
|
563 | (1,061 | ) | 829 | 607 | 953 | 1,490 | (127 | ) | 779 | 172 | 28.3 | % | |||||||||||||||||||||||||||||
|
Policy loans and other invested assets
|
320 | 327 | 325 | 391 | 388 | 398 | 367 | 295 | (96 | ) | -24.6 | % | ||||||||||||||||||||||||||||||
|
Cash & cash equivalents
|
88 | 73 | 54 | 57 | 53 | 68 | 70 | 56 | (1 | ) | -1.8 | % | ||||||||||||||||||||||||||||||
|
Total investment income
|
24,453 | 22,279 | 23,270 | 23,617 | 22,811 | 22,881 | 22,992 | 26,137 | 2,520 | 10.7 | % | |||||||||||||||||||||||||||||||
|
Investment expenses
|
1,237 | 1,252 | 1,167 | 1,211 | 1,212 | 1,200 | 1,228 | 1,226 | 15 | 1.2 | % | |||||||||||||||||||||||||||||||
|
Interest Expense on Surplus Note
|
— | — | — | — | — | — | 1,299 | 2,183 | 2,183 |
nm
|
||||||||||||||||||||||||||||||||
|
Net investment income
|
$ | 23,216 | $ | 21,027 | $ | 22,103 | $ | 22,406 | $ | 21,599 | $ | 21,681 | $ | 20,465 | $ | 22,728 | 322 | 1.4 | % | |||||||||||||||||||||||
| Fixed income book yield, end of period | 5.28 | % | 5.29 | % | 5.19 | % | 4.93 | % | 4.87 | % | 4.76 | % | 4.62 | % | 4.61 | % | ||||||||||||||||||||||||||
| New money yield | 2.75 | % | 2.91 | % | 3.78 | % | 3.01 | % | 3.61 | % | 2.55 | % | 2.29 | % | 3.04 | % | ||||||||||||||||||||||||||
|
YOY Q4
|
||||||||||||||||||||||||||||||||||||||||||
|
Q1
2013
|
Q2
2013
|
Q3
2013
|
Q4
2013
|
Q1
2014
|
Q2
2014
|
Q3
2014
|
Q4 2014 |
% Pt
Change
|
||||||||||||||||||||||||||||||||||
| Fixed Income Portfolio Quality Ratings | ||||||||||||||||||||||||||||||||||||||||||
|
Rating
|
||||||||||||||||||||||||||||||||||||||||||
|
AAA
|
17.7 | % | 17.5 | % | 16.5 | % | 17.7 | % | 17.1 | % | 16.7 | % | 17.2 | % | 17.4 | % | -0.2 | % | ||||||||||||||||||||||||
|
AA
|
7.7 | % | 7.7 | % | 8.0 | % | 7.9 | % | 7.8 | % | 8.3 | % | 6.8 | % | 7.0 | % | -0.9 | % | ||||||||||||||||||||||||
| A | 23.6 | % | 22.9 | % | 23.3 | % | 23.0 | % | 22.8 | % | 22.1 | % | 23.0 | % | 22.4 | % | -0.6 | % | ||||||||||||||||||||||||
|
BBB
|
45.7 | % | 46.5 | % | 46.7 | % | 46.2 | % | 47.5 | % | 47.5 | % | 48.1 | % | 48.0 | % | 1.8 | % | ||||||||||||||||||||||||
|
Below Investment Grade
|
5.3 | % | 5.3 | % | 5.4 | % | 4.8 | % | 4.6 | % | 4.9 | % | 4.9 | % | 5.0 | % | 0.2 | % | ||||||||||||||||||||||||
|
NA
|
0.0 | % | 0.1 | % | 0.1 | % | 0.4 | % | 0.1 | % | 0.4 | % | 0.0 | % | 0.0 | % | -0.3 | % | ||||||||||||||||||||||||
|
Total Fixed Income
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
nm
|
|||||||||||||||||||||||||
|
Average rating by amortized cost
|
A | A | A | A | A | A | A | A |
na
|
|||||||||||||||||||||||||||||||||
| As of December 31, 2014 |
|
As of December 31, 2014 |
|
As of December 31, 2014
|
|||||||||||||||||||||||||
|
Market
Value
|
Amortized
Cost
|
Credit
Rating
|
|
Market
Value
|
Amortized
Cost
|
Market
Value
|
Amortized
Cost
|
||||||||||||||||||||||
|
Top 25 Exposures
|
Foreign Exposure (1) |
|
Government Investments (1) |
|
|||||||||||||||||||||||||
| 1 |
Canada
|
$
|
27,007
|
$
|
28,056
|
AAA
|
United Kingdom
|
$
|
60,305
|
$
|
57,568
|
AAA
|
$
|
750
|
$
|
750
|
|||||||||||||
| 2 |
General Electric Co
|
19,180
|
16,780
|
AA-
|
Canada
|
43,532
|
41,651
|
AA
|
11,708
|
10,799
|
|||||||||||||||||||
| 3 |
Washington Real Estate Investment
|
11,039
|
10,514
|
BBB
|
Australia
|
41,612
|
39,062
|
A
|
16,805
|
15,777
|
|||||||||||||||||||
| 4 |
Province of Ontario Canada
|
10,867
|
10,373
|
AA-
|
Brazil
|
20,697
|
20,390
|
BBB
|
13,606
|
13,362
|
|||||||||||||||||||
| 5 |
Wells Fargo & Co
|
10,544
|
10,397
|
A
|
France
|
17,699
|
16,717
|
Below Investment Grade
|
—
|
—
|
|||||||||||||||||||
| 6 |
National Rural Utilities Cooperative
|
9,904
|
7,758
|
A
|
Switzerland
|
16,275
|
15,572
|
NA
|
0
|
0
|
|||||||||||||||||||
| 7 |
Iberdrola SA
|
9,421
|
8,471
|
BBB
|
Ireland
|
13,522
|
12,248
|
Total
|
$
|
42,869
|
$
|
40,687
|
|||||||||||||||||
| 8 |
Enel SpA
|
7,729
|
6,983
|
BBB
|
Bermuda
|
13,257
|
8,681
|
||||||||||||||||||||||
| 9 |
National Fuel Gas Co
|
7,641
|
6,560
|
BBB
|
Netherlands
|
11,041
|
10,563
|
||||||||||||||||||||||
| 10 |
Discover Financial Services
|
7,572
|
6,550
|
BBB-
|
Italy
|
10,259
|
9,483
|
Non-Government Investments (1)
|
|
||||||||||||||||||||
| 11 |
Altria Group Inc
|
7,521
|
6,220
|
BBB+
|
Korea Republic Of
|
9,190
|
8,681
|
||||||||||||||||||||||
| 12 |
Vale Overseas Ltd
|
7,406
|
7,096
|
A-
|
Germany
|
8,217
|
7,581
|
AAA
|
$
|
—
|
$
|
—
|
|||||||||||||||||
| 13 |
TTX Co
|
7,349
|
7,244
|
A+
|
Mexico
|
7,591
|
7,180
|
AA
|
17,105
|
15,912
|
|||||||||||||||||||
| 14 |
TransCanada Corp
|
7,180
|
7,177
|
A-
|
Hong Kong
|
7,504
|
6,981
|
A
|
89,553
|
85,282
|
|||||||||||||||||||
| 15 |
Ingram Micro Inc
|
7,123
|
6,666
|
BBB-
|
Belgium
|
6,914
|
5,705
|
BBB
|
184,538
|
174,632
|
|||||||||||||||||||
| 16 |
Republic of Korea
|
6,853
|
6,382
|
A+
|
Emerging Markets (2)
|
14,362
|
13,880
|
Below Investment Grade
|
15,595
|
14,804
|
|||||||||||||||||||
| 17 |
International Business Machines
|
6,851
|
6,195
|
AA-
|
All Other
|
48,140
|
49,809
|
NA
|
457
|
436
|
|||||||||||||||||||
| 18 |
Tesco PLC
|
6,709
|
6,350
|
BBB
|
Total
|
$
|
350,117
|
$
|
331,753
|
Total
|
$
|
307,249
|
$
|
291,066
|
|||||||||||||||
| 19 |
ArcelorMittal
|
6,704
|
5,867
|
BB+
|
|||||||||||||||||||||||||
| 20 |
Duke Realty Corp
|
6,502
|
6,101
|
BBB
|
|||||||||||||||||||||||||
| 21 |
Phillips 66
|
6,457
|
5,687
|
BBB+
|
|||||||||||||||||||||||||
| 22 |
Province of Quebec Canada
|
6,451
|
5,845
|
AA-
|
|||||||||||||||||||||||||
| 23 |
Liberty Property Trust
|
6,361
|
6,190
|
BBB
|
|||||||||||||||||||||||||
| 24 |
TransAlta Corp
|
6,318
|
6,257
|
BBB-
|
|||||||||||||||||||||||||
| 25 |
Verizon Communications Inc
|
6,219
|
5,943
|
BBB+
|
|||||||||||||||||||||||||
| Total |
$
|
222,907
|
$
|
207,662
|
|||||||||||||||||||||||||
| % of total fixed income portfolio |
11.1
|
%
|
10.9
|
%
|
|||||||||||||||||||||||||
| (1) |
US$ denominated investments in issuers outside of the United States based on country of risk
|
| (2) |
Emerging markets is as defined by MSCI, Inc. which include Chile, India, Peru, Poland and South Africa
|
|
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet.
|
15 of 16
|
Five-Year Historical Key Statistics
|
PRIMERICA, INC.
Financial Supplement
|
|
(Dollars in millions)
|
2010
|
2011
|
2012
|
2013
|
2014
|
Q1 2013 | Q2 2013 | Q3 2013 | Q4 2013 | Q1 2014 | Q2 2014 | Q3 2014 | Q4 2014 | |||||||||||||||||||||||||||||||||||||||
|
Recruits
|
231,390 | 244,756 | 191,752 | 186,251 | 190,439 | 46,348 | 50,358 | 51,523 | 38,022 | 48,306 | 50,024 | 49,055 | 43,054 | |||||||||||||||||||||||||||||||||||||||
|
Life-insurance licensed sales force, beginning of period
|
99,785 | 94,850 | 91,176 | 92,373 | 95,566 | 92,373 | 90,917 | 92,227 | 94,529 | 95,566 | 95,382 | 96,596 | 97,966 | |||||||||||||||||||||||||||||||||||||||
|
New life-licensed representatives
|
34,488 | 33,711 | 34,425 | 34,155 | 33,832 | 7,165 | 8,875 | 9,630 | 8,485 | 7,447 | 9,082 | 8,793 | 8,510 | |||||||||||||||||||||||||||||||||||||||
|
Non-renewal and terminated representatives
|
(39,423 | ) | (37,385 | ) | (33,228 | ) | (30,962 | ) | (31,040 | ) | (8,621 | ) | (7,565 | ) | (7,328 | ) | (7,448 | ) | (7,631 | ) | (7,868 | ) | (7,423 | ) | (8,118 | ) | ||||||||||||||||||||||||||
|
Life-insurance licensed sales force, end of period
|
94,850 | 91,176 | 92,373 | 95,566 | 98,358 | 90,917 | 92,227 | 94,529 | 95,566 | 95,382 | 96,596 | 97,966 | 98,358 | |||||||||||||||||||||||||||||||||||||||
|
Issued term life policies
|
223,514 | 237,535 | 222,558 | 214,617 | 220,984 | 50,356 | 57,622 | 53,997 | 52,642 | 49,320 | 59,569 | 55,146 | 56,949 | |||||||||||||||||||||||||||||||||||||||
|
Issued term life face amount
|
$ | 74,401 | $ | 73,146 | $ | 68,053 | $ | 67,783 | $ | 69,574 | $ | 15,709 | $ | 17,798 | $ | 17,056 | $ | 17,219 | $ | 15,748 | $ | 18,494 | $ | 17,337 | $ | 17,996 | ||||||||||||||||||||||||||
|
Term life face amount in force, beginning of period
|
$ | 650,195 | $ | 656,791 | $ | 664,955 | $ | 670,412 | $ | 674,868 | $ | 670,412 | $ | 670,414 | $ | 674,355 | $ | 676,360 | $ | 674,868 | $ | 673,078 | $ | 681,978 | $ | 681,178 | ||||||||||||||||||||||||||
|
Issued term life face amount
|
74,401 | 73,146 | 68,053 | 67,783 | 69,574 | 15,709 | 17,798 | 17,056 | 17,219 | 15,748 | 18,494 | 17,337 | 17,996 | |||||||||||||||||||||||||||||||||||||||
|
Terminated term life face amount
|
(70,964 | ) | (66,951 | ) | (61,593 | ) | (57,730 | ) | (54,962 | ) | (14,917 | ) | (13,139 | ) | (14,346 | ) | (15,329 | ) | (14,160 | ) | (12,759 | ) | (13,866 | ) | (14,177 | ) | ||||||||||||||||||||||||||
|
Foreign currency impact, net
|
3,158 | 1,970 | (1,003 | ) | (5,596 | ) | (7,553 | ) | (790 | ) | (719 | ) | (704 | ) | (3,383 | ) | (3,378 | ) | 3,166 | (4,272 | ) | (3,070 | ) | |||||||||||||||||||||||||||||
|
Term life face amount in force, end of period
|
$ | 656,791 | $ | 664,955 | $ | 670,412 | $ | 674,868 | $ | 681,927 | $ | 670,414 | $ | 674,355 | $ | 676,360 | $ | 674,868 | $ | 673,078 | $ | 681,978 | $ | 681,178 | $ | 681,927 | ||||||||||||||||||||||||||
|
Estimated annualized issued term life premium
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Premium from new policies
|
$ | 180.8 | $ | 187.6 | $ | 176.1 | $ | 173.5 | $ | 179.8 | $ | 40.2 | $ | 45.9 | $ | 43.9 | $ | 43.5 | $ | 40.1 | $ | 48.0 | $ | 44.7 | $ | 47.0 | ||||||||||||||||||||||||||
|
Additions and increases in premium
|
44.6 | 44.9 | 45.5 | 48.6 | 51.6 | 11.4 | 12.3 | 12.3 | 12.5 | 12.4 | 13.0 | 12.9 | 13.3 | |||||||||||||||||||||||||||||||||||||||
|
Total estimated annualized issued term life premium
|
$ | 225.4 | $ | 232.5 | $ | 221.5 | $ | 222.1 | $ | 231.4 | $ | 51.6 | $ | 58.2 | $ | 56.2 | $ | 56.0 | $ | 52.5 | $ | 61.1 | $ | 57.6 | $ | 60.3 | ||||||||||||||||||||||||||
|
Investment & Savings product sales
|
$ | 3,623.6 | $ | 4,265.1 | $ | 4,712.2 | $ | 5,208.8 | $ | 5,682.3 | $ | 1,365.3 | $ | 1,317.7 | $ | 1,248.7 | $ | 1,277.1 | $ | 1,410.8 | $ | 1,439.2 | $ | 1,376.5 | $ | 1,455.8 | ||||||||||||||||||||||||||
|
Investment & Savings average client asset values
|
$ | 31,908 | $ | 34,870 | $ | 35,904 | $ | 41,035 | $ | 46,936 | $ | 38,756 | $ | 40,326 | $ | 41,225 | $ | 43,832 | $ | 45,063 | $ | 46,611 | $ | 47,825 | $ | 48,243 | ||||||||||||||||||||||||||
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