Primerica tops Q3 profit estimates, revenue in line with estimate

Primerica, Inc. (PRI) reported third-quarter adjusted operating earnings of $6.77 per diluted share, above the $6.45 consensus estimate, according to its results release on Nov. 4. Adjusted operating revenues were $901.8 million, in line with the $901.1 million consensus estimate.

Here's how the company did:

• Adjusted diluted EPS: $6.77 vs. $6.45 consensus estimate, up 7% from a year earlier
• Adjusted operating revenues: $901.8 million vs. $838.9 million a year earlier, against a $901.1 million consensus estimate
• Net income: $209.1 million, up 1% from a year earlier

Primerica is a financial services distribution company serving middle-income households in the United States and Canada, selling term life insurance and third-party mutual funds, managed accounts, annuities and loans, according to the company's release.

The company said its investment business drove growth. Investment and Savings Products sales rose 19% to $4.4 billion, and client asset values ended the quarter at $140 billion, up 10% from a year earlier.

Chief Executive Officer Glenn Williams said: “Stable earnings in our Term Life segment and record investment sales continue to drive earnings momentum.”

Segment results

Term Life Insurance segment income before income taxes was $152.7 million, down 12% from a year earlier. Issued term life face amount decreased 5% to $25.7 billion.

Investment and Savings Products income before income taxes was $114.1 million, up 21% from a year earlier, on revenues of $378.0 million.

Capital returns

The company returned $159 million to stockholders during the quarter, including $122 million of share repurchases and $37 million of dividends paid.

The board approved a dividend of $1.20 per share, payable Dec. 14 to stockholders of record on Nov. 20. The company said its estimated statutory risk-based capital ratio for Primerica Life Insurance Company was approximately 445% as of Sept. 30.