Primerica Q4 Revenue Up 12% To $598 Million

Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended December 31, 2020.

Total revenues of $598.3 million increased 12% compared to the fourth quarter of 2019.

Net income of $100.1 million increased 7%, while earnings per diluted share of $2.52 increased 13% compared to the same quarter last year. ROE was 22.5% for the current quarter.

Adjusted operating revenues were $594.7 million, increasing 12% compared to the fourth quarter of 2019. Adjusted net operating income of $97.3 million increased 5%, while diluted adjusted operating earnings per share of $2.45 increased 10% compared to the same quarter last year. ROAE was 23.4% during the fourth quarter of 2020.

During the fourth quarter, the COVID-19 pandemic continued to have a significant impact on the Company’s Term Life segment. COVID-19 related death claims were approximately $14 million, net of reinsurance, their highest level since the onset of the pandemic. COVID-19 impacted customer behavior, with strong sales and policy persistency continuing in the quarter. The Investment and Savings Products (ISP) segment benefited from favorable market performance during the fourth quarter driving ending client asset values to a record $82 billion. ISP sales during the quarter continued to shift toward mutual funds and managed accounts and away from annuity products.

“The COVID-19 pandemic caused middle income consumers to clearly understand their need for protection today and investments for tomorrow. The adaptability of our sales force allowed us to meet those needs more than ever before,”

said Glenn Williams, Chief Executive Officer.

“I am very proud of how our Primerica team navigated the unique challenges of 2020 to continue to help clients achieve their financial goals.”

Results for the full year ended December 31, 2020 were also heavily impacted by the pandemic. COVID-19 related death claims, net of reinsurance, were approximately $33 million, while issued life policies were up 23% year-over-year with a record $109 billion of face amount issued. Policy persistency also reached record levels during the year. ISP sales for 2020 were a record $7.8 billion, up 4% year-over-year, despite a brief period of disruption following the market correction in March. Term Life and ISP income before taxes increased 16% and 6% year-over-year, respectively.

Total revenues of $2.2 billion increased 8% year-over-year, setting a new annual record for the Company. Net income of $386.2 million and earnings per diluted share of $9.57 increased 5% and 11%, respectively, and also represent new records.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, is a leading provider of financial services to middle-income households in North America. Independent licensed representatives educate Primerica clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, mutual funds, annuities and other financial products.

Primerica insured approximately 5 million lives and had over 2 million client investment accounts at December 31, 2019. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2018. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI.”


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