Delaware
|
001-34680
|
27-1204330
|
(State or Other Jurisdiction of
Incorporation) |
(Commission File Number)
|
(I.R.S. Employer
Identification Number) |
|
1 Primerica Parkway
Duluth, Georgia 30099
(Address of Principal Executive Offices)
|
|
☐
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
|
|
☐
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
|
|
☐
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
|
|
☐
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02 | Results of Operations and Financial Condition. |
Item 7.01
|
Regulation FD Disclosure.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
|
|
(d) Exhibits.
|
|
|
|
Date: November 7, 2017
|
PRIMERICA, INC.
|
|
|
|
|
|
|
|
|
/s/ Alison S. Rand
|
|
|
Alison S. Rand
|
|
|
Executive Vice President and Chief
Financial Officer |
Distribution Results
|
||||||||||||||||||||
Q3 2017
|
Q3 2016
|
%
Change
|
Q2 2017
|
%
Change
|
||||||||||||||||
Life Licensed Sales Force (1)
|
124,436
|
115,345
|
8
|
%
|
121,471
|
2
|
%
|
|||||||||||||
Recruits
|
90,210
|
73,706
|
22
|
%
|
78,273
|
15
|
%
|
|||||||||||||
New Life-Licensed Representatives
|
12,783
|
11,739
|
9
|
%
|
12,947
|
(1
|
)%
|
|||||||||||||
Life Insurance Policies Issued
|
78,056
|
75,374
|
4
|
%
|
84,033
|
(7
|
)%
|
|||||||||||||
Life Productivity (2)
|
0.21
|
0.22
|
*
|
0.23
|
*
|
|||||||||||||||
ISP Product Sales ($ billions)
|
$
|
1.43
|
$
|
1.34
|
7
|
%
|
$
|
1.57
|
(9
|
)%
|
||||||||||
Average Client Asset Values ($ billions)
|
$
|
57.66
|
$
|
50.68
|
14
|
%
|
$
|
55.78
|
3
|
%
|
(1)
|
End of period
|
(2)
|
Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
|
* | Not calculated |
Segment Results
|
||||||||||||||||||||
Q3 2017
|
Q3 2016
|
%
Change
|
Q2 2017
|
%
Change
|
||||||||||||||||
($ in thousands)
|
||||||||||||||||||||
Adjusted Operating Revenues: (1)
|
||||||||||||||||||||
Term Life Insurance
|
$
|
256,240
|
$
|
222,598
|
15
|
%
|
$
|
238,901
|
7
|
%
|
||||||||||
Investment and Savings Products
|
140,058
|
130,080
|
8
|
%
|
143,774
|
(3
|
)%
|
|||||||||||||
Corporate and Other Distributed Products
|
30,980
|
30,983
|
*
|
30,917
|
*
|
|||||||||||||||
Total adjusted operating revenues (1)
|
$
|
427,278
|
$
|
383,661
|
11
|
%
|
$
|
413,592
|
3
|
%
|
||||||||||
Adjusted Operating Income (loss) before income taxes:(1)
|
||||||||||||||||||||
Term Life Insurance
|
$
|
66,543
|
$
|
58,137
|
14
|
%
|
$
|
61,854
|
8
|
%
|
||||||||||
Investment and Savings Products
|
39,050
|
35,760
|
9
|
%
|
39,684
|
(2
|
)%
|
|||||||||||||
Corporate and Other Distributed Products
|
(5,415
|
) |
(5,425
|
)
|
*
|
(5,253
|
)
|
3
|
%
|
|||||||||||
Total adjusted operating income before income taxes (1)
|
$
|
100,178
|
$
|
88,472
|
13
|
%
|
$
|
96,285
|
4
|
%
|
*
|
Less than 1%.
|
(1)
|
See the Non-GAAP Financial Measures section and the segment Adjusted Operating Results Reconciliations at the end of this release for additional information.
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(Unaudited)
|
||||||||
September 30, 2017
|
December 31, 2016
|
|||||||
(In thousands)
|
||||||||
Assets
|
||||||||
Investments:
|
||||||||
Fixed-maturity securities available-for-sale, at fair value
|
$
|
1,888,506
|
$
|
1,792,438
|
||||
Fixed-maturity securities-held-to-maturity, at amortized cost
|
688,840
|
503,230
|
||||||
Equity securities available-for-sale, at fair value
|
45,171
|
44,894
|
||||||
Trading securities, at fair value
|
11,513
|
7,383
|
||||||
Policy loans
|
34,905
|
30,916
|
||||||
Total investments
|
2,668,935
|
2,378,861
|
||||||
Cash and cash equivalents
|
177,418
|
211,976
|
||||||
Accrued investment income
|
17,847
|
16,520
|
||||||
Due from reinsurers
|
4,238,978
|
4,193,562
|
||||||
Deferred policy acquisition costs, net
|
1,900,122
|
1,713,065
|
||||||
Agent balances, due premiums and other receivables
|
240,731
|
210,448
|
||||||
Intangible assets, net
|
52,364
|
54,915
|
||||||
Income taxes
|
43,601
|
37,369
|
||||||
Other assets
|
379,883
|
334,274
|
||||||
Separate account assets
|
2,486,960
|
2,287,953
|
||||||
Total assets
|
$
|
12,206,839
|
$
|
11,438,943
|
||||
Liabilities and Stockholders' Equity
|
||||||||
Liabilities:
|
||||||||
Future policy benefits
|
$
|
5,894,882
|
$
|
5,673,890
|
||||
Unearned premiums
|
476
|
527
|
||||||
Policy claims and other benefits payable
|
284,451
|
268,136
|
||||||
Other policyholders' funds
|
371,508
|
363,038
|
||||||
Notes payable
|
373,196
|
372,919
|
||||||
Surplus note
|
688,055
|
502,491
|
||||||
Income taxes
|
255,877
|
225,006
|
||||||
Other liabilities
|
463,926
|
449,963
|
||||||
Payable under securities lending
|
106,978
|
73,646
|
||||||
Separate account liabilities
|
2,486,960
|
2,287,953
|
||||||
Total liabilities
|
10,926,309
|
10,217,569
|
||||||
Stockholders' equity:
|
||||||||
Common stock
|
444
|
457
|
||||||
Paid-in capital
|
-
|
52,468
|
||||||
Retained earnings
|
1,228,546
|
1,138,851
|
||||||
Accumulated other comprehensive income, net of income tax
|
51,540
|
29,598
|
||||||
Total stockholders' equity
|
1,280,530
|
1,221,374
|
||||||
Total liabilities and stockholders' equity
|
$
|
12,206,839
|
$
|
11,438,943
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||||
Condensed Consolidated Statements of Income
|
||||||||
(Unaudited)
|
||||||||
Three months ended September 30,
|
||||||||
2017
|
2016
|
|||||||
(In thousands, except per-share amounts)
|
||||||||
Revenues:
|
||||||||
Direct premiums
|
$
|
646,079
|
$
|
616,587
|
||||
Ceded premiums
|
(397,641
|
)
|
(399,676
|
)
|
||||
Net premiums
|
248,438
|
216,911
|
||||||
Commissions and fees
|
144,627
|
134,282
|
||||||
Net investment income
|
19,922
|
19,399
|
||||||
Realized investment gains (losses), including OTTI
|
22
|
(35
|
)
|
|||||
Other, net
|
14,291
|
13,069
|
||||||
Total revenues
|
427,300
|
383,626
|
||||||
Benefits and expenses:
|
||||||||
Benefits and claims
|
105,864
|
93,022
|
||||||
Amortization of deferred policy acquisition costs
|
53,384
|
45,428
|
||||||
Sales commissions
|
72,022
|
66,700
|
||||||
Insurance expenses
|
37,637
|
32,837
|
||||||
Insurance commissions
|
5,593
|
4,709
|
||||||
Interest expense
|
7,073
|
7,184
|
||||||
Other operating expenses
|
45,527
|
45,309
|
||||||
Total benefits and expenses
|
327,100
|
295,189
|
||||||
Income before income taxes
|
100,200
|
88,437
|
||||||
Income taxes
|
33,565
|
30,400
|
||||||
Net income
|
$
|
66,635
|
$
|
58,037
|
||||
Earnings per share:
|
||||||||
Basic earnings per share
|
$
|
1.46
|
$
|
1.22
|
||||
Diluted earnings per share
|
$
|
1.46
|
$
|
1.22
|
||||
Shares used in computing earnings per share:
|
||||||||
Basic
|
45,318
|
47,008
|
||||||
Diluted
|
45,408
|
47,051
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||||||||
Consolidated Adjusted Operating Results Reconciliation
|
||||||||||||
(Unaudited – $ in thousands, except per share amounts)
|
||||||||||||
Three months ended September 30,
|
||||||||||||
2017
|
2016
|
% Change
|
||||||||||
Total revenues
|
$
|
427,300
|
$
|
383,626
|
11
|
%
|
||||||
Less: Realized investment gains (losses), including OTTI
|
22
|
(35
|
)
|
|||||||||
Adjusted operating revenues
|
$
|
427,278
|
$
|
383,661
|
11
|
%
|
||||||
Income before income taxes
|
$
|
100,200
|
$
|
88,437
|
13
|
%
|
||||||
Less: Realized investment gains (losses), including OTTI
|
22
|
(35
|
)
|
|||||||||
Adjusted operating income before income taxes
|
$
|
100,178
|
$
|
88,472
|
13
|
%
|
||||||
Net income
|
$
|
66,635
|
$
|
58,037
|
15
|
%
|
||||||
Less: Realized investment gains (losses), including OTTI
|
22
|
(35
|
)
|
|||||||||
Less: Tax impact of reconciling items
|
(8
|
)
|
12
|
|||||||||
Net adjusted operating income
|
$
|
66,621
|
$
|
58,060
|
15
|
%
|
||||||
Diluted earnings per share (1)
|
$
|
1.46
|
$
|
1.22
|
19
|
%
|
||||||
Less: Net after-tax impact of operating adjustments
|
-
|
-
|
|
|||||||||
Diluted adjusted operating earnings per share (1)
|
$
|
1.46
|
$
|
1.22
|
19
|
%
|
(1)
|
Percentage change in earnings per share is calculated prior to rounding per share amounts.
|
TERM LIFE INSURANCE SEGMENT
|
||||||||
Adjusted Premiums Reconciliation
|
||||||||
(Unaudited – in thousands)
|
||||||||
Three months ended September 30,
|
||||||||
2017
|
2016
|
|||||||
Direct premiums
|
$
|
638,830
|
$
|
608,396
|
||||
Less: Premiums ceded to IPO coinsurers
|
304,580
|
319,517
|
||||||
Adjusted direct premiums
|
$
|
334,250
|
$
|
288,879
|
||||
Ceded premiums
|
$
|
(395,772
|
)
|
$
|
(397,214
|
)
|
||
Less: Premiums ceded to IPO coinsurers
|
(304,580
|
)
|
(319,517
|
)
|
||||
Other ceded premiums
|
$
|
(91,192
|
)
|
$
|
(77,697
|
)
|
||
Net premiums
|
$
|
243,058
|
$
|
211,182
|
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
|
||||||||
Adjusted Operating Results Reconciliation
|
||||||||
(Unaudited – in thousands)
|
||||||||
Three months ended September 30,
|
||||||||
2017
|
2016
|
|||||||
Total revenues
|
$
|
31,002
|
$
|
30,948
|
||||
Less: Realized investment gains (losses), including OTTI
|
22
|
(35
|
)
|
|||||
Adjusted operating revenues
|
$
|
30,980
|
$
|
30,983
|
||||
Loss before income taxes
|
$
|
(5,393
|
)
|
$
|
(5,460
|
)
|
||
Less: Realized investment gains (losses), including OTTI
|
22
|
(35
|
)
|
|||||
Adjusted operating loss before income taxes
|
$
|
(5,415
|
)
|
$
|
(5,425
|
)
|
PRIMERICA, INC. AND SUBSIDIARIES
|
||||||||
Adjusted Stockholders' Equity Reconciliation
|
||||||||
(Unaudited – in thousands)
|
||||||||
September 30, 2017
|
December 31, 2016
|
|||||||
Stockholders' equity
|
$
|
1,280,530
|
$
|
1,221,374
|
||||
Less: Unrealized net investment gains recorded in stockholders' equity, net of income tax
|
47,048
|
42,791
|
||||||
Adjusted stockholders' equity
|
$
|
1,233,482
|
$
|
1,178,583
|
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 GAAP to non-GAAP financial measures
|
7
|
Segment operating results
|
8
|
Term Life Insurance segment - financial results, key statistics, and financial analysis
|
9-10
|
Investment and Savings Products segment - financial results, financial analysis, and key statistics
|
11-12
|
Investment portfolio
|
13-15
|
Five-year historical key statistics
|
16
|
Preface
|
PRIMERICA, INC.
Financial Supplement
|
● | Operating adjustments exclude the impact of realized investment gains and losses. We exclude realized investment gains and losses in measuring operating revenues to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains and losses and other factors prior to an invested asset's maturity that are not directly associated with the Company's insurance operations. |
● | Adjusted stockholders’ equity refers to the removal of the impact of net unrealized gains and losses on invested assets. We exclude unrealized investment gains and losses in measuring adjusted stockholders' equity as unrealized gains and losses from the Company's invested assets are largely caused by market movements in interest rates and credit spreads that do not necessarily correlate with the cash flows we will ultimately realize when an invested asset matures or is disposed. |
● | IPO coinsurance transactions 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 entities then affiliated with Citigroup Inc. (“Citi”) that were executed concurrent with our IPO. We exclude amounts ceded under the IPO coinsurance transactions in measuring adjusted direct premiums and other ceded premiums to present meaningful comparisons of the actual premiums economically maintained by the Company. Amounts ceded under the IPO coinsurance transactions will continue to decline over time as policies terminate within this block of business. |
Condensed Balance Sheets and Reconciliation of Balance Sheet Non-GAAP to GAAP Financial Measures
|
PRIMERICA, INC.
Financial Supplement
|
(Dollars in thousands)
|
Dec 31,
2015 |
Mar 31,
2016 |
Jun 30,
2016 |
Sep 30,
2016 |
Dec 31,
2016 |
Mar 31,
2017 |
Jun 30,
2017 |
Sep 30,
2017 |
||||||||||||||||||||||||
Condensed Balance Sheets
|
||||||||||||||||||||||||||||||||
Assets:
|
||||||||||||||||||||||||||||||||
Investments and cash excluding securities held to maturity
|
$
|
1,965,576
|
$
|
1,968,419
|
$
|
2,027,735
|
$
|
2,047,095
|
$
|
2,087,607
|
$
|
2,110,131
|
$
|
2,139,275
|
$
|
2,157,513
|
||||||||||||||||
Securities held to maturity
|
365,220
|
404,860
|
431,000
|
454,000
|
503,230
|
535,160
|
635,690
|
688,840
|
||||||||||||||||||||||||
Total investments and cash
|
2,330,796
|
2,373,279
|
2,458,735
|
2,501,095
|
2,590,837
|
2,645,291
|
2,774,965
|
2,846,353
|
||||||||||||||||||||||||
Due from reinsurers
|
4,110,628
|
4,160,266
|
4,147,284
|
4,161,537
|
4,193,562
|
4,219,547
|
4,191,754
|
4,238,978
|
||||||||||||||||||||||||
Deferred policy acquisition costs
|
1,500,259
|
1,559,833
|
1,619,236
|
1,672,454
|
1,713,065
|
1,767,681
|
1,833,877
|
1,900,122
|
||||||||||||||||||||||||
Other assets
|
605,200
|
656,871
|
669,723
|
685,779
|
653,525
|
681,156
|
719,765
|
734,425
|
||||||||||||||||||||||||
Separate account assets
|
2,063,899
|
2,264,108
|
2,311,124
|
2,347,816
|
2,287,953
|
2,356,320
|
2,424,937
|
2,486,960
|
||||||||||||||||||||||||
Total assets
|
$
|
10,610,782
|
$
|
11,014,358
|
$
|
11,206,101
|
$
|
11,368,681
|
$
|
11,438,943
|
$
|
11,669,996
|
$
|
11,945,297
|
$
|
12,206,839
|
||||||||||||||||
Liabilities:
|
||||||||||||||||||||||||||||||||
Future policy benefits
|
$
|
5,431,711
|
$
|
5,518,834
|
$
|
5,581,043
|
$
|
5,629,967
|
$
|
5,673,890
|
$
|
5,736,313
|
$
|
5,812,217
|
$
|
5,894,882
|
||||||||||||||||
Other policy liabilities
|
604,061
|
607,225
|
597,728
|
605,666
|
631,700
|
642,640
|
645,443
|
656,434
|
||||||||||||||||||||||||
Income taxes
|
148,125
|
177,457
|
199,985
|
215,454
|
225,006
|
237,719
|
241,314
|
255,877
|
||||||||||||||||||||||||
Other liabilities
|
408,757
|
409,870
|
413,888
|
426,970
|
449,963
|
449,734
|
428,176
|
463,926
|
||||||||||||||||||||||||
Notes payable
|
372,552
|
372,643
|
372,735
|
372,827
|
372,919
|
373,011
|
373,103
|
373,196
|
||||||||||||||||||||||||
Surplus note
|
364,424
|
404,079
|
430,233
|
453,247
|
502,491
|
534,435
|
634,980
|
688,055
|
||||||||||||||||||||||||
Payable under securities lending
|
71,482
|
87,383
|
91,901
|
95,843
|
73,646
|
93,326
|
115,875
|
106,978
|
||||||||||||||||||||||||
Separate account liabilities
|
2,063,899
|
2,264,108
|
2,311,124
|
2,347,816
|
2,287,953
|
2,356,320
|
2,424,937
|
2,486,960
|
||||||||||||||||||||||||
Total liabilities
|
9,465,010
|
9,841,598
|
9,998,636
|
10,147,790
|
10,217,568
|
10,423,499
|
10,676,044
|
10,926,309
|
||||||||||||||||||||||||
Stockholders’ equity:
|
||||||||||||||||||||||||||||||||
Common stock ($0.01 par value) (1)
|
483
|
473
|
466
|
460
|
457
|
455
|
450
|
444
|
||||||||||||||||||||||||
Paid-in capital
|
180,250
|
137,857
|
102,824
|
66,510
|
52,468
|
28,606
|
(0
|
)
|
(0
|
)
|
||||||||||||||||||||||
Retained earnings
|
952,804
|
989,685
|
1,040,860
|
1,090,388
|
1,138,851
|
1,182,038
|
1,224,375
|
1,228,546
|
||||||||||||||||||||||||
Treasury stock
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Accumulated other comprehensive income (loss), net:
|
||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) not other-than-temporarily impaired
|
32,106
|
48,747
|
68,473
|
71,827
|
42,852
|
47,534
|
49,883
|
47,191
|
||||||||||||||||||||||||
Net unrealized investment losses other-than-temporarily impaired
|
(71
|
)
|
(70
|
)
|
(68
|
)
|
(66
|
)
|
(62
|
)
|
(56
|
)
|
(54
|
)
|
(143
|
)
|
||||||||||||||||
Cumulative translation adjustment
|
(19,801
|
)
|
(3,933
|
)
|
(5,091
|
)
|
(8,227
|
)
|
(13,193
|
)
|
(12,082
|
)
|
(5,401
|
)
|
4,492
|
|||||||||||||||||
Total stockholders’ equity
|
1,145,772
|
1,172,759
|
1,207,465
|
1,220,891
|
1,221,374
|
1,246,497
|
1,269,253
|
1,280,530
|
||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
10,610,782
|
$
|
11,014,358
|
$
|
11,206,101
|
$
|
11,368,681
|
$
|
11,438,943
|
$
|
11,669,996
|
$
|
11,945,297
|
$
|
12,206,839
|
||||||||||||||||
Reconciliation of Adjusted Stockholders' Equity to Total Stockholders' Equity
|
||||||||||||||||||||||||||||||||
Adjusted stockholders' equity
|
$
|
1,113,736
|
$
|
1,124,082
|
$
|
1,139,060
|
$
|
1,149,131
|
$
|
1,178,584
|
$
|
1,199,018
|
$
|
1,219,424
|
$
|
1,233,482
|
||||||||||||||||
Reconciling items:
|
||||||||||||||||||||||||||||||||
Net unrealized investment gains (losses) not other-than-temporarily impaired
|
32,106
|
48,747
|
68,473
|
71,827
|
42,852
|
47,534
|
49,883
|
47,191
|
||||||||||||||||||||||||
Net unrealized investment losses other-than-temporarily impaired
|
(71
|
)
|
(70
|
)
|
(68
|
)
|
(66
|
)
|
(62
|
)
|
(56
|
)
|
(54
|
)
|
(143
|
)
|
||||||||||||||||
Total reconciling items
|
32,036
|
48,678
|
68,405
|
71,760
|
42,791
|
47,479
|
49,829
|
47,048
|
||||||||||||||||||||||||
Total stockholders’ equity
|
$
|
1,145,772
|
$
|
1,172,759
|
$
|
1,207,465
|
$
|
1,220,891
|
$
|
1,221,374
|
$
|
1,246,497
|
$
|
1,269,253
|
$
|
1,280,530
|
||||||||||||||||
Adjusted Stockholders' Equity Rollforward
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,096,864
|
$
|
1,113,736
|
$
|
1,124,082
|
$
|
1,139,060
|
$
|
1,149,131
|
$
|
1,178,584
|
$
|
1,199,018
|
$
|
1,219,424
|
||||||||||||||||
Net Income
|
47,948
|
45,176
|
59,326
|
58,038
|
56,874
|
52,069
|
63,107
|
66,635
|
||||||||||||||||||||||||
Shareholder dividends
|
(7,893
|
)
|
(8,295
|
)
|
(8,151
|
)
|
(8,511
|
)
|
(8,410
|
)
|
(8,882
|
)
|
(8,799
|
)
|
(9,120
|
)
|
||||||||||||||||
Retirement of shares and warrants
|
(20,538
|
)
|
(52,988
|
)
|
(41,330
|
)
|
(41,012
|
)
|
(18,697
|
)
|
(36,353
|
)
|
(45,185
|
)
|
(57,916
|
)
|
||||||||||||||||
Net foreign currency translation adjustment
|
(8,116
|
)
|
15,867
|
(1,157
|
)
|
(3,136
|
)
|
(4,966
|
)
|
1,111
|
6,681
|
9,893
|
||||||||||||||||||||
Other, net
|
5,471
|
10,585
|
6,290
|
4,692
|
4,653
|
12,489
|
4,602
|
4,565
|
||||||||||||||||||||||||
Balance, end of period
|
$
|
1,113,736
|
$
|
1,124,082
|
$
|
1,139,060
|
$
|
1,149,131
|
$
|
1,178,584
|
$
|
1,199,018
|
$
|
1,219,424
|
$
|
1,233,482
|
||||||||||||||||
Deferred Policy Acquisition Costs Rollforward
|
||||||||||||||||||||||||||||||||
Balance, beginning of period
|
$
|
1,465,175
|
$
|
1,500,259
|
$
|
1,559,833
|
$
|
1,619,236
|
$
|
1,672,454
|
$
|
1,713,065
|
$
|
1,767,681
|
$
|
1,833,877
|
||||||||||||||||
General expenses deferred
|
7,951
|
8,443
|
9,138
|
9,202
|
8,226
|
9,489
|
9,061
|
9,350
|
||||||||||||||||||||||||
Commission costs deferred
|
77,810
|
81,174
|
89,783
|
91,783
|
89,647
|
95,923
|
99,341
|
102,113
|
||||||||||||||||||||||||
Amortization of deferred policy acquisition costs
|
(44,334
|
)
|
(43,129
|
)
|
(38,720
|
)
|
(45,428
|
)
|
(53,305
|
)
|
(51,850
|
)
|
(47,861
|
)
|
(53,384
|
)
|
||||||||||||||||
Foreign currency impact and other, net
|
(6,343
|
)
|
13,086
|
(798
|
)
|
(2,339
|
)
|
(3,957
|
)
|
1,054
|
5,653
|
8,166
|
||||||||||||||||||||
Balance, end of period
|
$
|
1,500,259
|
$
|
1,559,833
|
$
|
1,619,236
|
$
|
1,672,454
|
$
|
1,713,065
|
$
|
1,767,681
|
$
|
1,833,877
|
$
|
1,900,122
|
(1)
|
Outstanding common shares exclude restricted stock units.
|
Financial Results and Other Statistical Data
|
PRIMERICA, INC.
Financial Supplement
|
YOY Q3
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except per-share data)
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||||
Earnings per Share
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic earnings per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares and fully vested equity awards
|
48,549,580
|
47,657,649
|
47,008,203
|
46,444,202
|
46,301,339
|
45,983,783
|
45,317,641
|
(1,690,562
|
)
|
-3.6
|
%
|
47,735,812
|
45,863,985
|
(1,871,827
|
)
|
-3.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Net income
|
$
|
45,176
|
$
|
59,326
|
$
|
58,038
|
$
|
56,874
|
$
|
52,069
|
$
|
63,107
|
$
|
66,635
|
$
|
8,597
|
14.8
|
%
|
$
|
162,540
|
$
|
181,811
|
$
|
19,271
|
11.9
|
%
|
||||||||||||||||||||||||||||
Less income attributable to unvested participating securities
|
(370
|
)
|
(491
|
)
|
(494
|
)
|
(482
|
)
|
(421
|
)
|
(430
|
)
|
(465
|
)
|
29
|
5.9
|
%
|
(1,353
|
)
|
(1,326
|
)
|
27
|
2.0
|
%
|
||||||||||||||||||||||||||||||
Net income used in computing basic EPS
|
$
|
44,806
|
$
|
58,835
|
$
|
57,544
|
$
|
56,392
|
$
|
51,648
|
$
|
62,677
|
$
|
66,170
|
$
|
8,626
|
15.0
|
%
|
$
|
161,187
|
$
|
180,485
|
$
|
19,298
|
12.0
|
%
|
||||||||||||||||||||||||||||
Basic earnings per share
|
$
|
0.92
|
$
|
1.23
|
$
|
1.22
|
$
|
1.21
|
$
|
1.12
|
$
|
1.36
|
$
|
1.46
|
$
|
0.24
|
19.3
|
%
|
$
|
3.38
|
$
|
3.94
|
$
|
0.56
|
16.5
|
%
|
||||||||||||||||||||||||||||
Adjusted Net operating income
|
$
|
45,680
|
$
|
57,104
|
$
|
58,061
|
$
|
55,917
|
$
|
51,976
|
$
|
63,039
|
$
|
66,620
|
$
|
8,560
|
14.7
|
%
|
$
|
160,845
|
$
|
181,635
|
$
|
20,790
|
12.9
|
%
|
||||||||||||||||||||||||||||
Less operating income attributable to unvested participating securities
|
(375
|
)
|
(472
|
)
|
(494
|
)
|
(474
|
)
|
(421
|
)
|
(430
|
)
|
(465
|
)
|
29
|
5.9
|
%
|
(1,339
|
)
|
(1,325
|
)
|
14
|
1.1
|
%
|
||||||||||||||||||||||||||||||
Adjusted Net operating income used in computing basic operating EPS
|
$
|
45,306
|
$
|
56,632
|
$
|
57,567
|
$
|
55,443
|
$
|
51,556
|
$
|
62,609
|
$
|
66,156
|
$
|
8,589
|
14.9
|
%
|
$
|
159,506
|
$
|
180,310
|
$
|
20,804
|
13.0
|
%
|
||||||||||||||||||||||||||||
Basic adjusted operating income per share
|
$
|
0.93
|
$
|
1.19
|
$
|
1.22
|
$
|
1.19
|
$
|
1.11
|
$
|
1.36
|
$
|
1.46
|
$
|
0.24
|
19.2
|
%
|
$
|
3.34
|
$
|
3.93
|
$
|
0.59
|
17.7
|
%
|
||||||||||||||||||||||||||||
Diluted earnings per share:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares and fully vested equity awards
|
48,549,580
|
47,657,649
|
47,008,203
|
46,444,202
|
46,301,339
|
45,983,783
|
45,317,641
|
(1,690,562
|
)
|
-3.6
|
%
|
47,735,812
|
45,863,985
|
(1,871,827
|
)
|
-3.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Dilutive impact of contingently issuable shares
|
24,090
|
49,680
|
42,632
|
51,274
|
72,947
|
86,550
|
89,455
|
46,823
|
109.8
|
%
|
38,800
|
82,984
|
44,184
|
113.9
|
%
|
|||||||||||||||||||||||||||||||||||||||
Shares used to calculate diluted EPS
|
48,573,670
|
47,707,329
|
47,050,835
|
46,495,476
|
46,374,286
|
46,070,333
|
45,407,096
|
(1,643,739
|
)
|
-3.5
|
%
|
47,774,612
|
45,946,969
|
(1,827,643
|
)
|
-3.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Net income
|
$
|
45,176
|
$
|
59,326
|
$
|
58,038
|
$
|
56,874
|
$
|
52,069
|
$
|
63,107
|
$
|
66,635
|
$
|
8,597
|
14.8
|
%
|
$
|
162,540
|
$
|
181,811
|
$
|
19,271
|
11.9
|
%
|
||||||||||||||||||||||||||||
Less income attributable to unvested participating securities
|
(370
|
)
|
(490
|
)
|
(493
|
)
|
(481
|
)
|
(421
|
)
|
(430
|
)
|
(464
|
)
|
29
|
5.9
|
%
|
(1,352
|
)
|
(1,324
|
)
|
28
|
2.1
|
%
|
||||||||||||||||||||||||||||||
Net income used in computing diluted EPS
|
$
|
44,806
|
$
|
58,835
|
$
|
57,544
|
$
|
56,393
|
$
|
51,648
|
$
|
62,677
|
$
|
66,171
|
$
|
8,627
|
15.0
|
%
|
$
|
161,188
|
$
|
180,487
|
$
|
19,299
|
12.0
|
%
|
||||||||||||||||||||||||||||
Diluted earnings per share
|
$
|
0.92
|
$
|
1.23
|
$
|
1.22
|
$
|
1.21
|
$
|
1.11
|
$
|
1.36
|
$
|
1.46
|
$
|
0.23
|
19.2
|
%
|
$
|
3.37
|
$
|
3.93
|
$
|
0.55
|
16.4
|
%
|
||||||||||||||||||||||||||||
Adjusted Net operating income
|
$
|
45,680
|
$
|
57,104
|
$
|
58,061
|
$
|
55,917
|
$
|
51,976
|
$
|
63,039
|
$
|
66,620
|
$
|
8,560
|
14.7
|
%
|
$
|
160,845
|
$
|
181,635
|
$
|
20,790
|
12.9
|
%
|
||||||||||||||||||||||||||||
Less operating income attributable to unvested participating securities
|
(374
|
)
|
(472
|
)
|
(494
|
)
|
(473
|
)
|
(420
|
)
|
(429
|
)
|
(464
|
)
|
30
|
6.0
|
%
|
(1,338
|
)
|
(1,323
|
)
|
15
|
1.1
|
%
|
||||||||||||||||||||||||||||||
Adjusted Net operating income used in computing diluted operating EPS
|
$
|
45,306
|
$
|
56,632
|
$
|
57,567
|
$
|
55,443
|
$
|
51,556
|
$
|
62,609
|
$
|
66,156
|
$
|
8,589
|
14.9
|
%
|
$
|
159,507
|
$
|
180,312
|
$
|
20,805
|
13.0
|
%
|
||||||||||||||||||||||||||||
Diluted adjusted operating income per share
|
$
|
0.93
|
$
|
1.19
|
$
|
1.22
|
$
|
1.19
|
$
|
1.11
|
$
|
1.36
|
$
|
1.46
|
$
|
0.23
|
19.1
|
%
|
$
|
3.34
|
$
|
3.92
|
$
|
0.59
|
17.5
|
%
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
YOY Q3
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
||||||||||||||||||||||||||||||||||||||||||
Annualized Return on Equity
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average stockholders' equity
|
$
|
1,159,266
|
$
|
1,190,112
|
$
|
1,214,178
|
$
|
1,221,133
|
$
|
1,233,936
|
$
|
1,257,875
|
$
|
1,274,892
|
$
|
60,714
|
5.0
|
%
|
$
|
1,187,852
|
$
|
1,255,567
|
$
|
67,716
|
5.7
|
%
|
||||||||||||||||||||||||||||
Average adjusted stockholders' equity
|
$
|
1,118,909
|
$
|
1,131,571
|
$
|
1,144,095
|
$
|
1,163,857
|
$
|
1,188,801
|
$
|
1,209,221
|
$
|
1,226,453
|
$
|
82,358
|
7.2
|
%
|
$
|
1,131,525
|
$
|
1,208,159
|
$
|
76,634
|
6.8
|
%
|
||||||||||||||||||||||||||||
Net income return on stockholders' equity
|
15.6
|
%
|
19.9
|
%
|
19.1
|
%
|
18.6
|
%
|
16.9
|
%
|
20.1
|
%
|
20.9
|
%
|
1.8
|
%
|
nm
|
18.2
|
%
|
19.3
|
%
|
1.1
|
%
|
nm
|
||||||||||||||||||||||||||||||
Net income return on adjusted stockholders' equity
|
16.2
|
%
|
21.0
|
%
|
20.3
|
%
|
19.5
|
%
|
17.5
|
%
|
20.9
|
%
|
21.7
|
%
|
1.4
|
%
|
nm
|
19.2
|
%
|
20.1
|
%
|
0.9
|
%
|
nm
|
||||||||||||||||||||||||||||||
Adjusted Net operating income return on adjusted stockholders' equity
|
16.3
|
%
|
20.2
|
%
|
20.3
|
%
|
19.2
|
%
|
17.5
|
%
|
20.9
|
%
|
21.7
|
%
|
1.4
|
%
|
nm
|
19.0
|
%
|
20.0
|
%
|
1.1
|
%
|
nm
|
||||||||||||||||||||||||||||||
Capital Structure
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt-to-capital (1)
|
24.1
|
%
|
23.6
|
%
|
23.4
|
%
|
23.4
|
%
|
23.0
|
%
|
22.7
|
%
|
22.6
|
%
|
-0.8
|
%
|
nm
|
23.4
|
%
|
22.6
|
%
|
-0.8
|
%
|
nm
|
||||||||||||||||||||||||||||||
Cash and invested assets to stockholders' equity
|
2.0
|
x
|
2.0
|
x
|
2.0
|
x
|
2.1
|
x
|
2.1
|
x
|
2.2
|
x
|
2.2
|
x
|
0.2
|
x
|
nm
|
2.0
|
x
|
2.2
|
x
|
0.2
|
x
|
nm
|
||||||||||||||||||||||||||||||
Cash and invested assets to adjusted stockholders' equity
|
2.1
|
x
|
2.2
|
x
|
2.2
|
x
|
2.2
|
x
|
2.2
|
x
|
2.3
|
x
|
2.3
|
x
|
0.1
|
x
|
nm
|
2.2
|
x
|
2.3
|
x
|
0.1
|
x
|
nm
|
||||||||||||||||||||||||||||||
Share count, end of period (2)
|
47,295,175
|
46,601,587
|
45,961,671
|
45,720,822
|
45,549,739
|
45,034,788
|
44,380,349
|
(1,581,322
|
)
|
-3.4
|
%
|
45,961,671
|
44,380,349
|
(1,581,322
|
)
|
-3.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Adjusted stockholders' equity per share
|
$
|
23.77
|
$
|
24.44
|
$
|
25.00
|
$
|
25.78
|
$
|
26.32
|
$
|
27.08
|
$
|
27.79
|
$
|
2.79
|
11.2
|
%
|
$
|
25.00
|
$
|
27.79
|
$
|
2.79
|
11.2
|
%
|
||||||||||||||||||||||||||||
Financial Strength Ratings - Primerica Life Insurance Co
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Moody's
|
A2
|
A2
|
A2
|
A2
|
A2
|
A2
|
A2
|
nm
|
nm
|
nm
|
nm
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||||
S&P
|
AA-
|
AA-
|
AA-
|
AA-
|
AA-
|
AA-
|
AA-
|
nm
|
nm
|
nm
|
nm
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||||
A.M. Best
|
A+
|
|
A+
|
|
A+
|
|
A+
|
|
A+
|
|
A+
|
|
A+
|
|
nm
|
nm
|
nm
|
nm
|
nm
|
nm
|
||||||||||||||||||||||||||||||||||
Holding Company Senior Debt Ratings
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Moody's
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
Baa2
|
nm
|
nm
|
nm
|
nm
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||||
S&P
|
A-
|
A-
|
A-
|
A-
|
A-
|
A-
|
A-
|
nm
|
nm
|
nm
|
nm
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||||||
A.M. Best
|
a-
|
a-
|
a-
|
a-
|
a-
|
a-
|
a-
|
nm
|
nm
|
nm
|
nm
|
nm
|
nm
|
(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, but excludes restricted stock units (RSUs).
|
Statements of Income
|
PRIMERICA, INC.
Financial Supplement
|
YOY Q3
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Statement of Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct premiums
|
$
|
597,130
|
$
|
612,189
|
$
|
616,587
|
$
|
618,362
|
$
|
627,698
|
$
|
637,426
|
$
|
646,079
|
$
|
29,492
|
4.8
|
%
|
$
|
1,825,906
|
$
|
1,911,203
|
$
|
85,297
|
4.7
|
%
|
||||||||||||||||||||||||||
Ceded premiums
|
(395,333
|
)
|
(406,683
|
)
|
(399,676
|
)
|
(398,867
|
)
|
(399,769
|
)
|
(406,043
|
)
|
(397,641
|
)
|
2,035
|
0.5
|
%
|
(1,201,692
|
)
|
(1,203,452
|
)
|
(1,760
|
)
|
-0.1
|
%
|
|||||||||||||||||||||||||||
Net premiums
|
201,797
|
205,506
|
216,911
|
219,495
|
227,929
|
231,384
|
248,438
|
31,527
|
14.5
|
%
|
624,214
|
707,751
|
83,537
|
13.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Net investment income
|
21,238
|
20,389
|
19,399
|
17,999
|
19,894
|
19,742
|
19,922
|
523
|
2.7
|
%
|
61,026
|
59,558
|
(1,468
|
)
|
-2.4
|
%
|
||||||||||||||||||||||||||||||||||||
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based (1)
|
56,220
|
59,057
|
55,149
|
56,894
|
60,517
|
60,692
|
53,488
|
(1,661
|
)
|
-3.0
|
%
|
170,425
|
174,697
|
4,272
|
2.5
|
%
|
||||||||||||||||||||||||||||||||||||
Asset-based (2)
|
55,306
|
59,541
|
60,759
|
61,997
|
64,474
|
67,424
|
70,279
|
9,520
|
15.7
|
%
|
175,606
|
202,176
|
26,569
|
15.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Account-based (3)
|
11,309
|
11,611
|
11,899
|
16,043
|
13,217
|
13,282
|
13,811
|
1,912
|
16.1
|
%
|
34,819
|
40,310
|
5,491
|
15.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Other commissions and fees
|
5,987
|
6,692
|
6,476
|
6,747
|
6,060
|
6,919
|
7,049
|
573
|
8.9
|
%
|
19,155
|
20,028
|
873
|
4.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Realized investment (losses) gains
|
(783
|
)
|
3,440
|
(35
|
)
|
1,465
|
134
|
104
|
22
|
57
|
nm
|
2,623
|
260
|
(2,362
|
)
|
-90.1
|
%
|
|||||||||||||||||||||||||||||||||||
Other, net
|
11,527
|
12,757
|
13,069
|
13,224
|
12,939
|
14,150
|
14,291
|
1,223
|
9.4
|
%
|
37,353
|
41,381
|
4,028
|
10.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Total revenues
|
362,601
|
378,993
|
383,626
|
393,864
|
405,164
|
413,696
|
427,300
|
43,674
|
11.4
|
%
|
1,125,220
|
1,246,161
|
120,940
|
10.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and claims
|
90,977
|
88,984
|
93,022
|
94,672
|
102,385
|
99,512
|
105,864
|
12,842
|
13.8
|
%
|
272,983
|
307,761
|
34,778
|
12.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Amortization of DAC
|
43,129
|
38,720
|
45,428
|
53,305
|
51,850
|
47,861
|
53,384
|
7,956
|
17.5
|
%
|
127,277
|
153,094
|
25,817
|
20.3
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance commissions
|
4,147
|
4,472
|
4,709
|
4,456
|
4,899
|
5,157
|
5,593
|
884
|
18.8
|
%
|
13,328
|
15,649
|
2,321
|
17.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance expenses
|
33,130
|
32,906
|
32,837
|
33,476
|
37,621
|
36,920
|
37,636
|
4,800
|
14.6
|
%
|
98,872
|
112,177
|
13,305
|
13.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Sales commissions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based (1)
|
40,327
|
42,040
|
38,276
|
40,031
|
43,209
|
43,253
|
38,338
|
63
|
0.2
|
%
|
120,643
|
124,800
|
4,157
|
3.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Asset-based (2)
|
23,093
|
24,907
|
25,271
|
26,368
|
27,630
|
28,965
|
30,220
|
4,948
|
19.6
|
%
|
73,272
|
86,815
|
13,543
|
18.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Other sales commissions
|
3,222
|
3,199
|
3,153
|
2,928
|
2,865
|
3,221
|
3,463
|
310
|
9.8
|
%
|
9,574
|
9,550
|
(25
|
)
|
-0.3
|
%
|
||||||||||||||||||||||||||||||||||||
Interest expense
|
7,173
|
7,178
|
7,184
|
7,157
|
7,127
|
7,144
|
7,074
|
(110
|
)
|
-1.5
|
%
|
21,534
|
21,345
|
(189
|
)
|
-0.9
|
%
|
|||||||||||||||||||||||||||||||||||
Other operating expenses
|
47,190
|
44,708
|
45,309
|
44,408
|
52,736
|
45,274
|
45,528
|
219
|
0.5
|
%
|
137,207
|
143,538
|
6,332
|
4.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Total benefits and expenses
|
292,388
|
287,113
|
295,189
|
306,799
|
330,322
|
317,308
|
327,100
|
31,911
|
10.8
|
%
|
874,690
|
974,730
|
100,040
|
11.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Income before income taxes
|
70,213
|
91,880
|
88,438
|
87,065
|
74,841
|
96,389
|
100,200
|
11,763
|
13.3
|
%
|
250,531
|
271,431
|
20,900
|
8.3
|
%
|
|||||||||||||||||||||||||||||||||||||
Income taxes
|
25,037
|
32,554
|
30,400
|
30,191
|
22,772
|
33,282
|
33,565
|
3,165
|
10.4
|
%
|
87,991
|
89,619
|
1,629
|
1.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Net income
|
$
|
45,176
|
$
|
59,326
|
$
|
58,038
|
$
|
56,874
|
$
|
52,069
|
$
|
63,107
|
$
|
66,635
|
$
|
8,597
|
14.8
|
%
|
$
|
162,540
|
$
|
181,811
|
$
|
19,271
|
11.9
|
%
|
||||||||||||||||||||||||||
Income Before Income Taxes by Segment
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Life
|
$
|
46,081
|
$
|
58,017
|
$
|
58,136
|
$
|
51,127
|
$
|
49,022
|
$
|
61,855
|
$
|
66,543
|
$
|
8,407
|
14.5
|
%
|
$
|
162,234
|
$
|
177,420
|
$
|
15,186
|
9.4
|
%
|
||||||||||||||||||||||||||
Investment & Savings Products
|
31,691
|
36,065
|
35,759
|
40,840
|
37,119
|
39,684
|
39,050
|
3,291
|
9.2
|
%
|
103,515
|
115,853
|
12,338
|
11.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Corporate & Other Distributed Products
|
(7,558
|
)
|
(2,202
|
)
|
(5,458
|
)
|
(4,903
|
)
|
(11,300
|
)
|
(5,149
|
)
|
(5,392
|
)
|
65
|
1.2
|
%
|
(15,218
|
)
|
(21,842
|
)
|
(6,624
|
)
|
-43.5
|
%
|
|||||||||||||||||||||||||||
Income before income taxes
|
$
|
70,213
|
$
|
91,880
|
$
|
88,438
|
$
|
87,065
|
$
|
74,841
|
$
|
96,389
|
$
|
100,200
|
$
|
11,763
|
13.3
|
%
|
$
|
250,531
|
$
|
271,431
|
$
|
20,900
|
8.3
|
%
|
(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
|
Reconciliation of Statement of Income GAAP to Non-GAAP Financial Measures
|
PRIMERICA, INC.
Financial Supplement
|
YOY Q3 | YOY YTD | |||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Reconciliation from Term Life Direct Premiums to Term Life Adjusted Direct Premiums
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Life direct premiums
|
$
|
589,244
|
$
|
604,117
|
$
|
608,396
|
$
|
611,583
|
$
|
620,379
|
$
|
630,485
|
$
|
638,830
|
$
|
30,435
|
5.0
|
%
|
$
|
1,801,757
|
$
|
1,889,695
|
$
|
87,938
|
4.9
|
%
|
||||||||||||||||||||||||||
Less: Premiums ceded to IPO Coinsurers
|
321,494
|
322,767
|
319,516
|
315,955
|
312,982
|
308,323
|
304,580
|
(14,937
|
)
|
-4.7
|
%
|
963,778
|
925,884
|
(37,894
|
)
|
-3.9
|
%
|
|||||||||||||||||||||||||||||||||||
Term Life adjusted direct premiums
|
$
|
267,750
|
$
|
281,350
|
$
|
288,879
|
$
|
295,628
|
$
|
307,397
|
$
|
322,163
|
$
|
334,251
|
$
|
45,371
|
15.7
|
%
|
$
|
837,979
|
$
|
963,811
|
$
|
125,832
|
15.0
|
%
|
||||||||||||||||||||||||||
Reconciliation from Term Life Ceded Premiums to Term Life Other Ceded Premiums
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Term Life ceded premiums
|
$
|
(393,271
|
)
|
$
|
(404,492
|
)
|
$
|
(397,214
|
)
|
$
|
(396,157
|
)
|
$
|
(398,077
|
)
|
$
|
(404,175
|
)
|
$
|
(395,772
|
)
|
$
|
1,441
|
0.4
|
%
|
$
|
(1,194,977
|
)
|
$
|
(1,198,024
|
)
|
$
|
(3,048
|
)
|
-0.3
|
%
|
||||||||||||||||
Less: Premiums ceded to IPO Coinsurers
|
(321,494
|
)
|
(322,767
|
)
|
(319,516
|
)
|
(315,955
|
)
|
(312,982
|
)
|
(308,323
|
)
|
(304,580
|
)
|
14,937
|
4.7
|
%
|
(963,778
|
)
|
(925,884
|
)
|
37,894
|
3.9
|
%
|
||||||||||||||||||||||||||||
Term Life other ceded premiums
|
$
|
(71,776
|
)
|
$
|
(81,725
|
)
|
$
|
(77,697
|
)
|
$
|
(80,202
|
)
|
$
|
(85,095
|
)
|
$
|
(95,852
|
)
|
$
|
(91,193
|
)
|
$
|
(13,496
|
)
|
-17.4
|
%
|
$
|
(231,198
|
)
|
$
|
(272,140
|
)
|
$
|
(40,942
|
)
|
-17.7
|
%
|
|||||||||||||||
Reconciliation from Total Revenues to Adjusted Operating Revenues
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues
|
$
|
362,601
|
$
|
378,993
|
$
|
383,626
|
$
|
393,864
|
$
|
405,164
|
$
|
413,696
|
$
|
427,300
|
$
|
43,674
|
11.4
|
%
|
$
|
1,125,220
|
$
|
1,246,161
|
$
|
120,940
|
10.7
|
%
|
||||||||||||||||||||||||||
Less: Realized investment gains/(losses)
|
(783
|
)
|
3,440
|
(35
|
)
|
1,465
|
134
|
104
|
22
|
nm
|
nm
|
2,623
|
260
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||
Adjusted operating revenues
|
$
|
363,384
|
$
|
375,553
|
$
|
383,661
|
$
|
392,399
|
$
|
405,030
|
$
|
413,592
|
$
|
427,278
|
$
|
43,617
|
11.4
|
%
|
$
|
1,122,598
|
$
|
1,245,900
|
$
|
123,303
|
11.0
|
%
|
||||||||||||||||||||||||||
Reconciliation from Income Before Income Taxes to Adjusted Operating Income Before Income
Taxes
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes
|
$
|
70,213
|
$
|
91,880
|
$
|
88,438
|
$
|
87,065
|
$
|
74,841
|
$
|
96,389
|
$
|
100,200
|
$
|
11,763
|
13.3
|
%
|
$
|
250,531
|
$
|
271,431
|
$
|
20,900
|
8.3
|
%
|
||||||||||||||||||||||||||
Less: Realized investment gains/(losses)
|
(783
|
)
|
3,440
|
(35
|
)
|
1,465
|
134
|
104
|
22
|
nm
|
nm
|
2,623
|
260
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||
Adjusted operating income before income taxes
|
$
|
70,996
|
$
|
88,440
|
$
|
88,472
|
$
|
85,599
|
$
|
74,708
|
$
|
96,285
|
$
|
100,178
|
$
|
11,706
|
13.2
|
%
|
$
|
247,908
|
$
|
271,170
|
$
|
23,262
|
9.4
|
%
|
||||||||||||||||||||||||||
Reconciliation from Net Income to Adjusted Net Operating Income
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income
|
$
|
45,176
|
$
|
59,326
|
$
|
58,038
|
$
|
56,874
|
$
|
52,069
|
$
|
63,107
|
$
|
66,635
|
$
|
8,597
|
14.8
|
%
|
$
|
162,540
|
$
|
181,811
|
$
|
19,271
|
11.9
|
%
|
||||||||||||||||||||||||||
Less: Realized investment gains/(losses)
|
(783
|
)
|
3,440
|
(35
|
)
|
1,465
|
134
|
104
|
22
|
nm
|
nm
|
2,623
|
260
|
nm
|
nm
|
|||||||||||||||||||||||||||||||||||||
Less: Tax impact of realized investment gains/(losses)
|
279
|
(1,219
|
)
|
12
|
(508
|
)
|
(41
|
)
|
(36
|
)
|
(8
|
)
|
nm
|
nm
|
(928
|
)
|
(84
|
)
|
nm
|
nm
|
||||||||||||||||||||||||||||||||
Adjusted net operating income
|
$
|
45,680
|
$
|
57,104
|
$
|
58,061
|
$
|
55,917
|
$
|
51,976
|
$
|
63,039
|
$
|
66,620
|
$
|
8,560
|
14.7
|
%
|
$
|
160,845
|
$
|
181,635
|
$
|
20,790
|
12.9
|
%
|
Segment Operating Results
|
PRIMERICA, INC.
Financial Supplement
|
YOY Q3
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Term Life Insurance
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct Premiums
|
$
|
589,244
|
$
|
604,117
|
$
|
608,396
|
$
|
611,583
|
$
|
620,379
|
$
|
630,485
|
$
|
638,830
|
$
|
30,435
|
5.0
|
%
|
$
|
1,801,757
|
$
|
1,889,695
|
$
|
87,938
|
4.9
|
%
|
||||||||||||||||||||||||||
Premiums ceded to IPO coinsurers (1)
|
(321,494
|
)
|
(322,767
|
)
|
(319,516
|
)
|
(315,955
|
)
|
(312,982
|
)
|
(308,323
|
)
|
(304,580
|
)
|
14,937
|
4.7
|
%
|
(963,778
|
)
|
(925,884
|
)
|
37,894
|
3.9
|
%
|
||||||||||||||||||||||||||||
Adjusted direct premiums (2)
|
267,750
|
281,350
|
288,879
|
295,628
|
307,397
|
322,163
|
334,251
|
45,371
|
15.7
|
%
|
837,979
|
963,811
|
125,832
|
15.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Other ceded premiums (3)
|
(71,776
|
)
|
(81,725
|
)
|
(77,697
|
)
|
(80,202
|
)
|
(85,095
|
)
|
(95,852
|
)
|
(91,193
|
)
|
(13,496
|
)
|
-17.4
|
%
|
(231,198
|
)
|
(272,140
|
)
|
(40,942
|
)
|
-17.7
|
%
|
||||||||||||||||||||||||||
Net premiums
|
195,973
|
199,625
|
211,182
|
215,426
|
222,302
|
226,311
|
243,058
|
31,876
|
15.1
|
%
|
606,780
|
691,671
|
84,890
|
14.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Allocated net investment income
|
1,850
|
1,871
|
1,903
|
2,010
|
2,303
|
2,347
|
2,527
|
624
|
32.8
|
%
|
5,624
|
7,177
|
1,553
|
27.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Other, net
|
8,274
|
9,062
|
9,513
|
9,692
|
9,446
|
10,244
|
10,655
|
1,142
|
12.0
|
%
|
26,849
|
30,345
|
3,496
|
13.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
206,097
|
210,559
|
222,598
|
227,128
|
234,051
|
238,902
|
256,240
|
33,642
|
15.1
|
%
|
639,253
|
729,192
|
89,939
|
14.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and claims
|
86,795
|
83,835
|
88,800
|
91,209
|
97,771
|
95,532
|
101,351
|
12,551
|
14.1
|
%
|
259,430
|
294,653
|
35,223
|
13.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Amortization of DAC
|
41,224
|
36,477
|
43,365
|
51,744
|
50,133
|
44,937
|
50,386
|
7,020
|
16.2
|
%
|
121,067
|
145,456
|
24,389
|
20.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance commissions
|
968
|
1,094
|
1,171
|
1,068
|
1,408
|
1,646
|
1,874
|
703
|
60.0
|
%
|
3,234
|
4,929
|
1,695
|
52.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance expenses
|
31,029
|
31,135
|
31,125
|
31,980
|
35,717
|
34,932
|
36,086
|
4,961
|
15.9
|
%
|
93,288
|
106,734
|
13,446
|
14.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses
|
160,016
|
152,541
|
164,462
|
176,001
|
185,029
|
177,047
|
189,697
|
25,236
|
15.3
|
%
|
477,019
|
551,773
|
74,754
|
15.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Income before income taxes
|
$
|
46,081
|
$
|
58,017
|
$
|
58,136
|
$
|
51,127
|
$
|
49,022
|
$
|
61,855
|
$
|
66,543
|
$
|
8,407
|
14.5
|
%
|
$
|
162,234
|
$
|
177,420
|
$
|
15,186
|
9.4
|
%
|
||||||||||||||||||||||||||
Investment & Savings Products
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based
|
$
|
56,220
|
$
|
59,057
|
$
|
55,149
|
$
|
56,894
|
$
|
60,517
|
$
|
60,692
|
$
|
53,488
|
$
|
(1,661
|
)
|
-3.0
|
%
|
$
|
170,425
|
$
|
174,697
|
$
|
4,272
|
2.5
|
%
|
|||||||||||||||||||||||||
Asset-based
|
55,306
|
59,541
|
60,759
|
61,997
|
64,474
|
67,424
|
70,279
|
9,520
|
15.7
|
%
|
175,606
|
202,176
|
26,569
|
15.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Account-based
|
11,309
|
11,611
|
11,899
|
16,043
|
13,217
|
13,282
|
13,811
|
1,912
|
16.1
|
%
|
34,819
|
40,310
|
5,491
|
15.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Other, net
|
2,083
|
2,399
|
2,273
|
2,081
|
2,199
|
2,376
|
2,480
|
208
|
9.1
|
%
|
6,754
|
7,056
|
302
|
4.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
124,918
|
132,608
|
130,079
|
137,016
|
140,407
|
143,774
|
140,058
|
9,979
|
7.7
|
%
|
387,605
|
424,239
|
36,634
|
9.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of DAC
|
1,919
|
1,704
|
1,636
|
889
|
1,734
|
2,310
|
2,780
|
1,144
|
69.9
|
%
|
5,258
|
6,824
|
1,565
|
29.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance commissions
|
2,631
|
2,884
|
3,001
|
2,941
|
2,959
|
3,050
|
3,219
|
218
|
7.3
|
%
|
8,515
|
9,227
|
712
|
8.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Sales commissions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based
|
40,327
|
42,040
|
38,276
|
40,031
|
43,209
|
43,253
|
38,338
|
63
|
0.2
|
%
|
120,643
|
124,800
|
4,157
|
3.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Asset-based
|
23,093
|
24,907
|
25,271
|
26,368
|
27,630
|
28,965
|
30,220
|
4,948
|
19.6
|
%
|
73,272
|
86,815
|
13,543
|
18.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Other operating expenses
|
25,257
|
25,008
|
26,136
|
25,946
|
27,756
|
26,512
|
26,451
|
315
|
1.2
|
%
|
76,402
|
80,719
|
4,318
|
5.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses
|
93,227
|
96,543
|
94,320
|
96,176
|
103,288
|
104,090
|
101,008
|
6,688
|
7.1
|
%
|
284,090
|
308,386
|
24,296
|
8.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Income before income taxes
|
$
|
31,691
|
$
|
36,065
|
$
|
35,759
|
$
|
40,840
|
$
|
37,119
|
$
|
39,684
|
$
|
39,050
|
$
|
3,291
|
9.2
|
%
|
$
|
103,515
|
$
|
115,853
|
$
|
12,338
|
11.9
|
%
|
||||||||||||||||||||||||||
Corporate & Other Distributed Products
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct premiums
|
$
|
7,886
|
$
|
8,072
|
$
|
8,191
|
$
|
6,779
|
$
|
7,319
|
$
|
6,941
|
$
|
7,249
|
$
|
(942
|
)
|
-11.5
|
%
|
$
|
24,149
|
$
|
21,509
|
$
|
(2,641
|
)
|
-10.9
|
%
|
||||||||||||||||||||||||
Ceded premiums
|
(2,063
|
)
|
(2,191
|
)
|
(2,462
|
)
|
(2,710
|
)
|
(1,692
|
)
|
(1,868
|
)
|
(1,869
|
)
|
594
|
24.1
|
%
|
(6,716
|
)
|
(5,428
|
)
|
1,288
|
19.2
|
%
|
||||||||||||||||||||||||||||
Net premiums
|
5,823
|
5,881
|
5,729
|
4,069
|
5,627
|
5,073
|
5,380
|
(349
|
)
|
-6.1
|
%
|
17,433
|
16,080
|
(1,353
|
)
|
-7.8
|
%
|
|||||||||||||||||||||||||||||||||||
Allocated net investment income
|
19,389
|
18,518
|
17,496
|
15,989
|
17,591
|
17,395
|
17,395
|
(101
|
)
|
-0.6
|
%
|
55,402
|
52,381
|
(3,021
|
)
|
-5.5
|
%
|
|||||||||||||||||||||||||||||||||||
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans
|
44
|
43
|
36
|
31
|
30
|
33
|
35
|
(1
|
)
|
-3.2
|
%
|
122
|
98
|
(25
|
)
|
-20.2
|
%
|
|||||||||||||||||||||||||||||||||||
DebtWatchers
|
282
|
280
|
262
|
264
|
241
|
223
|
216
|
(45
|
)
|
-17.3
|
%
|
824
|
681
|
(143
|
)
|
-17.4
|
%
|
|||||||||||||||||||||||||||||||||||
Prepaid Legal Services
|
2,650
|
2,739
|
2,832
|
2,875
|
2,946
|
3,063
|
3,182
|
350
|
12.4
|
%
|
8,221
|
9,191
|
970
|
11.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Auto and Homeowners Insurance
|
1,757
|
2,231
|
1,981
|
2,381
|
1,815
|
2,166
|
1,980
|
(1
|
)
|
nm
|
5,970
|
5,961
|
(8
|
)
|
-0.1
|
%
|
||||||||||||||||||||||||||||||||||||
Long-Term Care Insurance
|
713
|
638
|
629
|
563
|
542
|
520
|
524
|
(105
|
)
|
-16.7
|
%
|
1,980
|
1,586
|
(394
|
)
|
-19.9
|
%
|
|||||||||||||||||||||||||||||||||||
Other sales commissions
|
540
|
762
|
736
|
633
|
486
|
913
|
1,112
|
376
|
51.0
|
%
|
2,038
|
2,511
|
473
|
23.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Other, net
|
1,171
|
1,296
|
1,283
|
1,450
|
1,294
|
1,530
|
1,156
|
(127
|
)
|
-9.9
|
%
|
3,750
|
3,980
|
230
|
6.1
|
%
|
||||||||||||||||||||||||||||||||||||
Adjusted operating revenues
|
32,370
|
32,387
|
30,984
|
28,254
|
30,572
|
30,917
|
30,981
|
(4
|
)
|
nm
|
95,740
|
92,469
|
(3,271
|
)
|
-3.4
|
%
|
||||||||||||||||||||||||||||||||||||
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and claims
|
4,182
|
5,149
|
4,222
|
3,463
|
4,615
|
3,980
|
4,513
|
291
|
6.9
|
%
|
13,553
|
13,107
|
(446
|
)
|
-3.3
|
%
|
||||||||||||||||||||||||||||||||||||
Amortization of DAC
|
(15
|
)
|
539
|
427
|
671
|
(17
|
)
|
613
|
218
|
(209
|
)
|
-48.8
|
%
|
951
|
814
|
(137
|
)
|
-14.4
|
%
|
|||||||||||||||||||||||||||||||||
Insurance commissions
|
548
|
494
|
537
|
447
|
532
|
461
|
500
|
(37
|
)
|
-6.9
|
%
|
1,579
|
1,493
|
(86
|
)
|
-5.4
|
%
|
|||||||||||||||||||||||||||||||||||
Insurance expenses
|
2,101
|
1,771
|
1,712
|
1,496
|
1,904
|
1,988
|
1,551
|
(162
|
)
|
-9.4
|
%
|
5,585
|
5,443
|
(142
|
)
|
-2.5
|
%
|
|||||||||||||||||||||||||||||||||||
Sales commissions
|
3,222
|
3,199
|
3,153
|
2,928
|
2,865
|
3,221
|
3,463
|
310
|
9.8
|
%
|
9,574
|
9,550
|
(25
|
)
|
-0.3
|
%
|
||||||||||||||||||||||||||||||||||||
Interest expense
|
7,173
|
7,178
|
7,184
|
7,157
|
7,127
|
7,144
|
7,074
|
(110
|
)
|
-1.5
|
%
|
21,534
|
21,345
|
(189
|
)
|
-0.9
|
%
|
|||||||||||||||||||||||||||||||||||
Other operating expenses
|
21,933
|
19,699
|
19,173
|
18,462
|
24,980
|
18,763
|
19,077
|
(96
|
)
|
-0.5
|
%
|
60,805
|
62,819
|
2,014
|
3.3
|
%
|
||||||||||||||||||||||||||||||||||||
Benefits and expenses
|
39,145
|
38,029
|
36,408
|
34,622
|
42,006
|
36,170
|
36,395
|
(12
|
)
|
nm
|
113,581
|
114,571
|
990
|
0.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Adjusted operating income before income taxes
|
$
|
(6,775
|
)
|
$
|
(5,642
|
)
|
$
|
(5,423
|
)
|
$
|
(6,368
|
)
|
$
|
(11,434
|
)
|
$
|
(5,254
|
)
|
$
|
(5,415
|
)
|
$
|
8
|
0.2
|
%
|
$
|
(17,841
|
)
|
$
|
(22,102
|
)
|
$
|
(4,262
|
)
|
-23.9
|
%
|
(1)
|
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements
|
(2)
|
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers
|
(3)
|
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers
|
Term Life Insurance – Financial Results and Analysis
|
PRIMERICA, INC.
Financial Supplement
|
(Dollars in thousands)
|
YOY Q3
|
YOY YTD
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Term Life Insurance Income Before Income Taxes
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Direct Premiums
|
$
|
589,244
|
$
|
604,117
|
$
|
608,396
|
$
|
611,583
|
$
|
620,379
|
$
|
630,485
|
$
|
638,830
|
$
|
30,435
|
5.0
|
%
|
$
|
1,801,757
|
$
|
1,889,695
|
$
|
87,938
|
4.9
|
%
|
||||||||||||||||||||||||||
Premiums ceded to IPO coinsurers (1)
|
(321,494
|
)
|
(322,767
|
)
|
(319,516
|
)
|
(315,955
|
)
|
(312,982
|
)
|
(308,323
|
)
|
(304,580
|
)
|
14,937
|
4.7
|
%
|
(963,778
|
)
|
(925,884
|
)
|
37,894
|
3.9
|
%
|
||||||||||||||||||||||||||||
Adjusted direct premiums (2)
|
267,750
|
281,350
|
288,879
|
295,628
|
307,397
|
322,163
|
334,251
|
45,371
|
15.7
|
%
|
837,979
|
963,811
|
125,832
|
15.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Other ceded premiums (3)
|
(71,776
|
)
|
(81,725
|
)
|
(77,697
|
)
|
(80,202
|
)
|
(85,095
|
)
|
(95,852
|
)
|
(91,193
|
)
|
(13,496
|
)
|
-17.4
|
%
|
(231,198
|
)
|
(272,140
|
)
|
(40,942
|
)
|
-17.7
|
%
|
||||||||||||||||||||||||||
Net premiums
|
195,973
|
199,625
|
211,182
|
215,426
|
222,302
|
226,311
|
243,058
|
31,876
|
15.1
|
%
|
606,780
|
691,671
|
84,890
|
14.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Allocated net investment income
|
1,850
|
1,871
|
1,903
|
2,010
|
2,303
|
2,347
|
2,527
|
624
|
32.8
|
%
|
5,624
|
7,177
|
1,553
|
27.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Other, net
|
8,274
|
9,062
|
9,513
|
9,692
|
9,446
|
10,244
|
10,655
|
1,142
|
12.0
|
%
|
26,849
|
30,345
|
3,496
|
13.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
206,097
|
210,559
|
222,598
|
227,128
|
234,051
|
238,902
|
256,240
|
33,642
|
15.1
|
%
|
639,253
|
729,192
|
89,939
|
14.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and claims
|
86,795
|
83,835
|
88,800
|
91,209
|
97,771
|
95,532
|
101,351
|
12,551
|
14.1
|
%
|
259,430
|
294,653
|
35,223
|
13.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Amortization of DAC
|
41,224
|
36,477
|
43,365
|
51,744
|
50,133
|
44,937
|
50,386
|
7,020
|
16.2
|
%
|
121,067
|
145,456
|
24,389
|
20.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance commissions
|
968
|
1,094
|
1,171
|
1,068
|
1,408
|
1,646
|
1,874
|
703
|
60.0
|
%
|
3,234
|
4,929
|
1,695
|
52.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance expenses
|
31,029
|
31,135
|
31,125
|
31,980
|
35,717
|
34,932
|
36,086
|
4,961
|
15.9
|
%
|
93,288
|
106,734
|
13,446
|
14.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses
|
160,016
|
152,541
|
164,462
|
176,001
|
185,029
|
177,047
|
189,697
|
25,236
|
15.3
|
%
|
477,019
|
551,773
|
74,754
|
15.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Income before income taxes
|
$
|
46,081
|
$
|
58,017
|
$
|
58,136
|
$
|
51,127
|
$
|
49,022
|
$
|
61,855
|
$
|
66,543
|
$
|
8,407
|
14.5
|
%
|
$
|
162,234
|
$
|
177,420
|
$
|
15,186
|
9.4
|
%
|
||||||||||||||||||||||||||
Total Term Life Insurance - Financial Analysis
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Primary direct premiums (4)
|
$
|
189,540
|
$
|
202,830
|
$
|
211,137
|
$
|
218,761
|
$
|
227,390
|
$
|
240,580
|
$
|
250,457
|
$
|
39,320
|
18.6
|
%
|
$
|
603,508
|
$
|
718,427
|
$
|
114,920
|
19.0
|
%
|
||||||||||||||||||||||||||
Legacy direct premiums (5)
|
399,704
|
401,287
|
397,258
|
392,821
|
392,989
|
389,906
|
388,373
|
(8,885
|
)
|
-2.2
|
%
|
1,198,249
|
1,171,268
|
(26,982
|
)
|
-2.3
|
%
|
|||||||||||||||||||||||||||||||||||
Total direct premiums
|
$
|
589,244
|
$
|
604,117
|
$
|
608,396
|
$
|
611,583
|
$
|
620,379
|
$
|
630,485
|
$
|
638,830
|
$
|
30,435
|
5.0
|
%
|
$
|
1,801,757
|
$
|
1,889,695
|
$
|
87,938
|
4.9
|
%
|
||||||||||||||||||||||||||
Premiums ceded to IPO coinsurers
|
$
|
321,494
|
$
|
322,767
|
$
|
319,516
|
$
|
315,955
|
$
|
312,982
|
$
|
308,323
|
$
|
304,580
|
$
|
(14,937
|
)
|
-4.7
|
%
|
$
|
963,778
|
$
|
925,884
|
$
|
(37,894
|
)
|
-3.9
|
%
|
||||||||||||||||||||||||
% of Legacy direct premiums
|
80.4
|
%
|
80.4
|
%
|
80.4
|
%
|
80.4
|
%
|
79.6
|
%
|
79.1
|
%
|
78.4
|
%
|
nm
|
nm
|
80.4
|
%
|
79.0
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Benefits and claims, net (6)
|
$
|
158,571
|
$
|
165,560
|
$
|
166,497
|
$
|
171,411
|
$
|
182,866
|
$
|
191,384
|
$
|
192,544
|
$
|
26,047
|
15.6
|
%
|
$
|
490,629
|
$
|
566,794
|
$
|
76,165
|
15.5
|
%
|
||||||||||||||||||||||||||
% of adjusted direct premiums
|
59.2
|
%
|
58.8
|
%
|
57.6
|
%
|
58.0
|
%
|
59.5
|
%
|
59.4
|
%
|
57.6
|
%
|
nm
|
nm
|
58.5
|
%
|
58.8
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
DAC amortization & insurance commissions
|
$
|
42,193
|
$
|
37,572
|
$
|
44,537
|
$
|
52,812
|
$
|
51,542
|
$
|
46,584
|
$
|
52,260
|
$
|
7,723
|
17.3
|
%
|
$
|
124,301
|
$
|
150,385
|
$
|
26,084
|
21.0
|
%
|
||||||||||||||||||||||||||
% of adjusted direct premiums
|
15.8
|
%
|
13.4
|
%
|
15.4
|
%
|
17.9
|
%
|
16.8
|
%
|
14.5
|
%
|
15.6
|
%
|
nm
|
nm
|
14.8
|
%
|
15.6
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Insurance expenses, net (7)
|
$
|
22,755
|
$
|
22,072
|
$
|
21,612
|
$
|
22,287
|
$
|
26,271
|
$
|
24,687
|
$
|
25,431
|
$
|
3,819
|
17.7
|
%
|
$
|
66,439
|
$
|
76,389
|
$
|
9,950
|
15.0
|
%
|
||||||||||||||||||||||||||
% of adjusted direct premiums
|
8.5
|
%
|
7.8
|
%
|
7.5
|
%
|
7.5
|
%
|
8.5
|
%
|
7.7
|
%
|
7.6
|
%
|
nm
|
nm
|
7.9
|
%
|
7.9
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Total Term Life income before income taxes
|
$
|
46,081
|
$
|
58,017
|
$
|
58,136
|
$
|
51,127
|
$
|
49,022
|
$
|
61,855
|
$
|
66,543
|
$
|
8,407
|
14.5
|
%
|
$
|
162,234
|
$
|
177,420
|
$
|
15,186
|
9.4
|
%
|
||||||||||||||||||||||||||
Term Life operating margin (8)
|
17.2
|
%
|
20.6
|
%
|
20.1
|
%
|
17.3
|
%
|
15.9
|
%
|
19.2
|
%
|
19.9
|
%
|
nm
|
nm
|
19.4
|
%
|
18.4
|
%
|
nm
|
nm
|
(1)
|
Premiums ceded to IPO coinsurers - premiums ceded to IPO coinsurers under the IPO coinsurance transactions excluding any reimbursements from the IPO coinsurers on previously existing reinsurance agreements
|
(2)
|
Adjusted direct premiums - direct premiums net of premiums ceded to IPO coinsurers
|
(3)
|
Other ceded premiums - premiums ceded to non-IPO coinsurers net of any applicable reimbursements from the IPO coinsurers
|
(4)
|
Primary direct premiums - direct premiums not subject to the 2010 IPO coinsurance transactions
|
(5)
|
Legacy direct premiums - direct premiums subject to the 2010 IPO coinsurance 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
|
(8)
|
Term Life operating margin - Term Life operating income before income taxes as a percentage of adjusted direct premiums
|
Term Life Insurance - Key Statistics
|
PRIMERICA, INC.
Financial Supplement
|
YOY Q3
|
YOY YTD
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except as noted)
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Key Statistics
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Life-insurance licensed sales force, beginning of period
|
106,710
|
108,220
|
112,365
|
115,345
|
116,827
|
117,907
|
121,471
|
9,106
|
8.1
|
%
|
106,710
|
116,827
|
10,117
|
9.5
|
%
|
|||||||||||||||||||||||||||||||||||||
New life-licensed representatives
|
9,666
|
12,171
|
11,739
|
11,148
|
10,903
|
12,947
|
12,783
|
1,044
|
8.9
|
%
|
33,576
|
36,633
|
3,057
|
9.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Non-renewal and terminated representatives
|
(8,156
|
)
|
(8,026
|
)
|
(8,759
|
)
|
(9,666
|
)
|
(9,823
|
)
|
(9,383
|
)
|
(9,818
|
)
|
(1,059
|
)
|
-12.1
|
%
|
(24,941
|
)
|
(29,024
|
)
|
(4,083
|
)
|
-16.4
|
%
|
||||||||||||||||||||||||||
Life-insurance licensed sales force, end of period
|
108,220
|
112,365
|
115,345
|
116,827
|
117,907
|
121,471
|
124,436
|
9,091
|
7.9
|
%
|
115,345
|
124,436
|
9,091
|
7.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Estimated annualized issued term life premium ($mills) (1):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Premium from new policies
|
$
|
54.0
|
$
|
63.1
|
$
|
61.9
|
$
|
66.2
|
$
|
59.4
|
$
|
70.2
|
$
|
65.8
|
$
|
3.9
|
6.3
|
%
|
$
|
179.1
|
$
|
195.5
|
$
|
16.4
|
9.2
|
%
|
||||||||||||||||||||||||||
Additions and increases in premium
|
14.0
|
15.4
|
15.2
|
15.9
|
15.1
|
16.5
|
16.4
|
1.2
|
7.9
|
%
|
44.6
|
48.0
|
3.4
|
7.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Total estimated annualized issued term life premium
|
$
|
68.0
|
$
|
78.6
|
$
|
77.1
|
$
|
82.0
|
$
|
74.5
|
$
|
86.7
|
$
|
82.2
|
$
|
5.1
|
6.6
|
%
|
$
|
223.6
|
$
|
243.4
|
$
|
19.8
|
8.9
|
%
|
||||||||||||||||||||||||||
Issued term life policies
|
66,376
|
77,384
|
75,374
|
79,110
|
70,642
|
84,033
|
78,056
|
2,682
|
3.6
|
%
|
219,134
|
232,731
|
13,597
|
6.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Estimated average annualized issued term life premium per policy (1)(2)
|
$
|
814
|
$
|
816
|
$
|
822
|
$
|
837
|
$
|
841
|
$
|
836
|
$
|
843
|
$
|
22
|
2.6
|
%
|
$
|
817
|
$
|
840
|
$
|
23
|
2.8
|
%
|
||||||||||||||||||||||||||
Term life face amount in-force, beginning of period ($mills)
|
$
|
693,194
|
$
|
704,632
|
$
|
714,756
|
$
|
722,162
|
$
|
728,385
|
$
|
733,756
|
$
|
746,427
|
$
|
31,671
|
4.4
|
%
|
$
|
693,194
|
$
|
728,385
|
$
|
35,191
|
5.1
|
%
|
||||||||||||||||||||||||||
Issued term life face amount (3)
|
19,790
|
23,145
|
22,775
|
24,159
|
21,628
|
25,458
|
24,035
|
1,260
|
5.5
|
%
|
65,710
|
71,121
|
5,411
|
8.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Terminated term life face amount
|
(13,814
|
)
|
(12,700
|
)
|
(14,407
|
)
|
(16,318
|
)
|
(16,704
|
)
|
(14,994
|
)
|
(16,331
|
)
|
(1,924
|
)
|
-13.4
|
%
|
(40,921
|
)
|
(48,029
|
)
|
(7,108
|
)
|
-17.4
|
%
|
||||||||||||||||||||||||||
Foreign currency impact, net
|
5,462
|
(321
|
)
|
(962
|
)
|
(1,619
|
)
|
447
|
2,207
|
3,280
|
4,242
|
nm
|
4,179
|
5,934
|
1,755
|
nm
|
||||||||||||||||||||||||||||||||||||
Term life face amount in-force, end of period
|
$
|
704,632
|
$
|
714,756
|
$
|
722,162
|
$
|
728,385
|
$
|
733,756
|
$
|
746,427
|
$
|
757,411
|
$
|
35,249
|
4.9
|
%
|
$
|
722,162
|
$
|
757,411
|
$
|
35,249
|
4.9
|
%
|
(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
|
Investment and Savings Products - Financial Results and Financial Analysis
|
PRIMERICA, INC.
Financial Supplement
|
(Dollars in thousands, except as noted)
|
YOY Q3
|
YOY YTD
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Investment & Savings Products Income Before Income Taxes
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Commissions and fees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based
|
$
|
56,220
|
$
|
59,057
|
$
|
55,149
|
$
|
56,894
|
$
|
60,517
|
$
|
60,692
|
$
|
53,488
|
$
|
(1,661
|
)
|
-3.0
|
%
|
$
|
170,425
|
$
|
174,697
|
$
|
4,272
|
2.5
|
%
|
|||||||||||||||||||||||||
Asset-based
|
55,306
|
59,541
|
60,759
|
61,997
|
64,474
|
67,424
|
70,279
|
9,520
|
15.7
|
%
|
175,606
|
202,176
|
26,569
|
15.1
|
%
|
|||||||||||||||||||||||||||||||||||||
Account-based
|
11,309
|
11,611
|
11,899
|
16,043
|
13,217
|
13,282
|
13,811
|
1,912
|
16.1
|
%
|
34,819
|
40,310
|
5,491
|
15.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Other, net
|
2,083
|
2,399
|
2,273
|
2,081
|
2,199
|
2,376
|
2,480
|
208
|
9.1
|
%
|
6,754
|
7,056
|
302
|
4.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Revenues
|
124,918
|
132,608
|
130,079
|
137,016
|
140,407
|
143,774
|
140,058
|
9,979
|
7.7
|
%
|
387,605
|
424,239
|
36,634
|
9.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of DAC
|
1,919
|
1,704
|
1,636
|
889
|
1,734
|
2,310
|
2,780
|
1,144
|
69.9
|
%
|
5,258
|
6,824
|
1,565
|
29.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Insurance commissions
|
2,631
|
2,884
|
3,001
|
2,941
|
2,959
|
3,050
|
3,219
|
218
|
7.3
|
%
|
8,515
|
9,227
|
712
|
8.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Sales commissions:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales-based
|
40,327
|
42,040
|
38,276
|
40,031
|
43,209
|
43,253
|
38,338
|
63
|
0.2
|
%
|
120,643
|
124,800
|
4,157
|
3.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Asset-based
|
23,093
|
24,907
|
25,271
|
26,368
|
27,630
|
28,965
|
30,220
|
4,948
|
19.6
|
%
|
73,272
|
86,815
|
13,543
|
18.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Other operating expenses
|
25,257
|
25,008
|
26,136
|
25,946
|
27,756
|
26,512
|
26,451
|
315
|
1.2
|
%
|
76,402
|
80,719
|
4,318
|
5.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Benefits and expenses
|
93,227
|
96,543
|
94,320
|
96,176
|
103,288
|
104,090
|
101,008
|
6,688
|
7.1
|
%
|
284,090
|
308,386
|
24,296
|
8.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Income before income taxes
|
$
|
31,691
|
$
|
36,065
|
$
|
35,759
|
$
|
40,840
|
$
|
37,119
|
$
|
39,684
|
$
|
39,050
|
$
|
3,291
|
9.2
|
%
|
$
|
103,515
|
$
|
115,853
|
$
|
12,338
|
11.9
|
%
|
||||||||||||||||||||||||||
Financial Analysis
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Fees paid based on client asset values (1)
|
$
|
4,298
|
$
|
4,677
|
$
|
4,893
|
$
|
4,837
|
$
|
4,884
|
$
|
5,088
|
$
|
5,440
|
$
|
548
|
11.2
|
%
|
$
|
13,867
|
$
|
15,413
|
$
|
1,546
|
11.1
|
%
|
||||||||||||||||||||||||||
Fees paid based on fee-generating positions (2)
|
3,495
|
3,510
|
3,527
|
3,553
|
3,574
|
3,616
|
3,609
|
82
|
2.3
|
%
|
10,532
|
10,799
|
267
|
2.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Other operating expenses
|
17,464
|
16,821
|
17,716
|
17,557
|
19,298
|
17,808
|
17,402
|
(315
|
)
|
-1.8
|
%
|
52,002
|
54,507
|
2,505
|
4.8
|
%
|
||||||||||||||||||||||||||||||||||||
Total other operating expenses
|
$
|
25,257
|
$
|
25,008
|
$
|
26,136
|
$
|
25,946
|
$
|
27,756
|
$
|
26,512
|
$
|
26,451
|
$
|
315
|
1.2
|
%
|
$
|
76,402
|
$
|
80,719
|
$
|
4,318
|
5.7
|
%
|
||||||||||||||||||||||||||
Sales-based net revenue as % of revenue-generating sales (3)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
|
1.31
|
%
|
1.29
|
%
|
1.44
|
%
|
1.36
|
%
|
1.27
|
%
|
1.25
|
%
|
1.26
|
%
|
nm
|
nm
|
1.35
|
%
|
1.26
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Canada
|
1.10
|
%
|
1.04
|
%
|
1.00
|
%
|
0.98
|
%
|
1.01
|
%
|
0.99
|
%
|
0.98
|
%
|
nm
|
nm
|
1.05
|
%
|
0.99
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Total
|
1.28
|
%
|
1.26
|
%
|
1.38
|
%
|
1.32
|
%
|
1.23
|
%
|
1.21
|
%
|
1.22
|
%
|
nm
|
nm
|
1.31
|
%
|
1.22
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Asset-based net revenue as % of average asset values (4)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S.
|
0.036
|
%
|
0.036
|
%
|
0.035
|
%
|
0.035
|
%
|
0.035
|
%
|
0.036
|
%
|
0.036
|
%
|
nm
|
nm
|
0.106
|
%
|
0.107
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Canada
|
0.124
|
%
|
0.131
|
%
|
0.133
|
%
|
0.139
|
%
|
0.129
|
%
|
0.123
|
%
|
0.120
|
%
|
nm
|
nm
|
0.389
|
%
|
0.372
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Total
|
0.050
|
%
|
0.052
|
%
|
0.051
|
%
|
0.052
|
%
|
0.051
|
%
|
0.050
|
%
|
0.050
|
%
|
nm
|
nm
|
0.153
|
%
|
0.150
|
%
|
nm
|
nm
|
||||||||||||||||||||||||||||||
Account-based net revenue per average fee generating position (5)(6)
|
$
|
2.74
|
$
|
2.81
|
$
|
2.89
|
$
|
4.34
|
$
|
3.34
|
$
|
3.32
|
$
|
3.50
|
nm
|
nm
|
$
|
8.44
|
$
|
10.16
|
nm
|
nm
|
(1)
|
Fees paid based on client asset values - administration fees on Canadian Segregated Funds and advisory fees on Managed Accounts that vary directly with client asset values
|
(2)
|
Fees paid based on fee-generating positions - recordkeeping fees that vary with the number of fee-generating positions
|
(3)
|
Sales-based net revenue - commission and fee revenue less commissions paid to the sales force based on product sales activity
|
(4)
|
Asset-based net revenue - commission and fee revenue less administration and advisory fees paid to third-party providers and commissions paid to the sales force earned based on product account values including amortization of deferred acquisition costs for segregated funds
|
(5)
|
Account-based net revenue - fee revenue less recordkeeping fees paid to third-party providers based on fee-generating positions
|
(6)
|
In whole dollars
|
Investment and Savings Products - Key Statistics
|
PRIMERICA, INC.
Financial Supplement
|
(Dollars in thousands, except as noted)
|
YOY Q3
|
YOY YTD
|
||||||||||||||||||||||||||||||||||||||||||||||||||
Key Statistics
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
YTD
2016 |
YTD
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||||||||||||||
Product sales ($mills)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Mutual Funds
|
$
|
599.9
|
$
|
693.2
|
$
|
652.4
|
$
|
671.6
|
$
|
752.2
|
$
|
804.2
|
$
|
707.4
|
$
|
54.9
|
8.4
|
%
|
$
|
1,945.5
|
$
|
2,263.8
|
$
|
318.3
|
16.4
|
%
|
||||||||||||||||||||||||||
Canada Retail Mutual Funds
|
209.6
|
159.4
|
144.3
|
149.0
|
232.8
|
182.7
|
170.8
|
26.5
|
18.4
|
%
|
513.4
|
586.3
|
72.9
|
14.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Indexed Annuities
|
84.4
|
114.2
|
99.7
|
100.5
|
80.9
|
83.6
|
64.2
|
(35.5
|
)
|
-35.6
|
%
|
298.3
|
228.7
|
(69.6
|
)
|
-23.3
|
%
|
|||||||||||||||||||||||||||||||||||
Variable Annuities and other
|
349.4
|
383.6
|
322.0
|
359.4
|
346.2
|
366.5
|
301.7
|
(20.3
|
)
|
-6.3
|
%
|
1,055.1
|
1,014.4
|
(40.6
|
)
|
-3.8
|
%
|
|||||||||||||||||||||||||||||||||||
Total sales-based revenue generating product sales
|
1,243.3
|
1,350.5
|
1,218.5
|
1,280.4
|
1,412.2
|
1,437.0
|
1,244.1
|
25.7
|
2.1
|
%
|
3,812.3
|
4,093.3
|
281.0
|
7.4
|
%
|
|||||||||||||||||||||||||||||||||||||
Managed Accounts
|
45.2
|
55.2
|
54.0
|
57.4
|
70.8
|
72.4
|
125.4
|
71.4
|
132.3
|
%
|
154.5
|
268.5
|
114.1
|
73.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Segregated Funds
|
87.3
|
63.9
|
68.7
|
69.8
|
102.4
|
63.5
|
61.7
|
(7.1
|
)
|
-10.3
|
%
|
220.0
|
227.5
|
7.6
|
3.4
|
%
|
||||||||||||||||||||||||||||||||||||
Total product sales
|
$
|
1,375.9
|
$
|
1,469.6
|
$
|
1,341.2
|
$
|
1,407.6
|
$
|
1,585.3
|
$
|
1,572.8
|
$
|
1,431.2
|
$
|
90.0
|
6.7
|
%
|
$
|
4,186.7
|
$
|
4,589.3
|
$
|
402.6
|
9.6
|
%
|
||||||||||||||||||||||||||
Canada Retail Mutual Funds
|
$
|
209.6
|
$
|
159.4
|
$
|
144.3
|
$
|
149.0
|
$
|
232.8
|
$
|
182.7
|
$
|
170.8
|
$
|
26.5
|
18.4
|
%
|
$
|
513.4
|
$
|
586.3
|
$
|
72.9
|
14.2
|
%
|
||||||||||||||||||||||||||
Segregated Funds
|
87.3
|
63.9
|
68.7
|
69.8
|
102.4
|
63.5
|
61.7
|
(7.1
|
)
|
-10.3
|
%
|
220.0
|
227.5
|
7.6
|
3.4
|
%
|
||||||||||||||||||||||||||||||||||||
Total Canada product sales
|
297.0
|
223.4
|
213.1
|
218.8
|
335.2
|
246.2
|
232.5
|
19.4
|
9.1
|
%
|
733.4
|
813.9
|
80.5
|
11.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Total U.S. product sales
|
1,078.9
|
1,246.3
|
1,128.1
|
1,188.8
|
1,250.1
|
1,326.6
|
1,198.7
|
70.6
|
6.3
|
%
|
3,453.3
|
3,775.5
|
322.2
|
9.3
|
%
|
|||||||||||||||||||||||||||||||||||||
Total product sales
|
$
|
1,375.9
|
$
|
1,469.6
|
$
|
1,341.2
|
$
|
1,407.6
|
$
|
1,585.3
|
$
|
1,572.8
|
$
|
1,431.2
|
$
|
90.0
|
6.7
|
%
|
$
|
4,186.7
|
$
|
4,589.3
|
$
|
402.6
|
9.6
|
%
|
||||||||||||||||||||||||||
Client asset values, beginning of period ($mills)
|
$
|
47,353
|
$
|
48,174
|
$
|
49,372
|
$
|
51,334
|
$
|
52,339
|
$
|
54,925
|
$
|
56,591
|
$
|
7,219
|
14.6
|
%
|
$
|
47,353
|
$
|
52,339
|
$
|
4,986
|
10.5
|
%
|
||||||||||||||||||||||||||
Inflows
|
1,376
|
1,470
|
1,341
|
1,408
|
1,585
|
1,573
|
1,431
|
90
|
6.7
|
%
|
4,187
|
4,589
|
403
|
9.6
|
%
|
|||||||||||||||||||||||||||||||||||||
Outflows (1)
|
(1,153
|
)
|
(1,222
|
)
|
(1,141
|
)
|
(1,104
|
)
|
(1,266
|
)
|
(1,318
|
)
|
(1,258
|
)
|
(117
|
)
|
-10.3
|
%
|
(3,516
|
)
|
(3,841
|
)
|
(325
|
)
|
-9.2
|
%
|
||||||||||||||||||||||||||
Net flows
|
223
|
247
|
201
|
304
|
320
|
255
|
174
|
(27
|
)
|
-13.5
|
%
|
671
|
748
|
78
|
nm
|
|||||||||||||||||||||||||||||||||||||
Foreign currency impact, net
|
555
|
(32
|
)
|
(99
|
)
|
(171
|
)
|
47
|
241
|
354
|
453
|
nm
|
424
|
642
|
218
|
nm
|
||||||||||||||||||||||||||||||||||||
Change in market value, net and other (2)
|
43
|
983
|
1,860
|
871
|
2,219
|
1,170
|
1,552
|
(308
|
)
|
-16.6
|
%
|
2,887
|
4,941
|
2,055
|
nm
|
|||||||||||||||||||||||||||||||||||||
Client asset values, end of period
|
$
|
48,174
|
$
|
49,372
|
$
|
51,334
|
$
|
52,339
|
$
|
54,925
|
$
|
56,591
|
$
|
58,671
|
$
|
7,336
|
14.3
|
%
|
$
|
51,334
|
$
|
58,671
|
$
|
7,336
|
14.3
|
%
|
||||||||||||||||||||||||||
Annualized net flows as % of beginning of period asset values
|
1.9
|
%
|
2.1
|
%
|
1.6
|
%
|
2.4
|
%
|
2.4
|
%
|
1.9
|
%
|
1.2
|
%
|
-0.4
|
%
|
nm
|
1.9
|
%
|
1.9
|
%
|
0.0
|
%
|
nm
|
||||||||||||||||||||||||||||
Average client asset values ($mills)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Mutual Funds
|
$
|
23,390
|
$
|
24,326
|
$
|
25,198
|
$
|
25,617
|
$
|
26,899
|
$
|
27,890
|
$
|
28,756
|
$
|
3,559
|
14.1
|
%
|
$
|
24,305
|
$
|
27,849
|
$
|
3,544
|
14.6
|
%
|
||||||||||||||||||||||||||
Canada Retail Mutual Funds
|
5,478
|
5,963
|
6,133
|
6,157
|
6,434
|
6,673
|
6,960
|
827
|
13.5
|
%
|
5,858
|
6,689
|
831
|
14.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Managed Accounts
|
1,582
|
1,680
|
1,776
|
1,840
|
1,954
|
2,084
|
2,246
|
471
|
26.5
|
%
|
1,679
|
2,095
|
416
|
24.7
|
%
|
|||||||||||||||||||||||||||||||||||||
Indexed Annuities
|
1,366
|
1,450
|
1,539
|
1,629
|
1,699
|
1,774
|
1,836
|
297
|
19.3
|
%
|
1,452
|
1,770
|
318
|
21.9
|
%
|
|||||||||||||||||||||||||||||||||||||
Variable Annuities and other
|
12,711
|
13,228
|
13,694
|
13,901
|
14,505
|
14,982
|
15,394
|
1,700
|
12.4
|
%
|
13,211
|
14,960
|
1,749
|
13.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Segregated Funds
|
2,120
|
2,289
|
2,339
|
2,301
|
2,331
|
2,375
|
2,463
|
123
|
5.3
|
%
|
2,249
|
2,390
|
140
|
6.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Total
|
$
|
46,646
|
$
|
48,936
|
$
|
50,679
|
$
|
51,445
|
$
|
53,823
|
$
|
55,778
|
$
|
57,656
|
$
|
6,977
|
13.8
|
%
|
$
|
48,754
|
$
|
55,752
|
$
|
6,999
|
14.4
|
%
|
||||||||||||||||||||||||||
Canada Retail Mutual Funds
|
$
|
5,478
|
$
|
5,963
|
$
|
6,133
|
$
|
6,157
|
$
|
6,434
|
$
|
6,673
|
$
|
6,960
|
$
|
827
|
13.5
|
%
|
$
|
5,858
|
$
|
6,689
|
$
|
831
|
14.2
|
%
|
||||||||||||||||||||||||||
Segregated Funds
|
2,120
|
2,289
|
2,339
|
2,301
|
2,331
|
2,375
|
2,463
|
123
|
5.3
|
%
|
2,249
|
2,390
|
140
|
6.2
|
%
|
|||||||||||||||||||||||||||||||||||||
Total Canada average client assets
|
7,597
|
8,252
|
8,472
|
8,458
|
8,765
|
9,048
|
9,423
|
951
|
11.2
|
%
|
8,107
|
9,079
|
971
|
12.0
|
%
|
|||||||||||||||||||||||||||||||||||||
Total U.S. average client assets
|
39,049
|
40,684
|
42,207
|
42,987
|
45,058
|
46,730
|
48,233
|
6,026
|
14.3
|
%
|
40,646
|
46,674
|
6,027
|
14.8
|
%
|
|||||||||||||||||||||||||||||||||||||
Total average client assets
|
$
|
46,646
|
$
|
48,936
|
$
|
50,679
|
$
|
51,445
|
$
|
53,823
|
$
|
55,778
|
$
|
57,656
|
$
|
6,977
|
13.8
|
%
|
$
|
48,754
|
$
|
55,752
|
$
|
6,999
|
14.4
|
%
|
||||||||||||||||||||||||||
Average number of fee-generating positions (thous) (3)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||
Recordkeeping and custodial
|
2,191
|
2,200
|
2,203
|
2,209
|
2,218
|
2,237
|
2,235
|
32
|
1.4
|
%
|
2,198
|
2,230
|
32
|
1.5
|
%
|
|||||||||||||||||||||||||||||||||||||
Recordkeeping only
|
666
|
684
|
690
|
666
|
670
|
676
|
678
|
(12
|
)
|
-1.8
|
%
|
680
|
675
|
(5
|
)
|
-0.8
|
%
|
|||||||||||||||||||||||||||||||||||
Total
|
2,857
|
2,884
|
2,893
|
2,875
|
2,887
|
2,913
|
2,913
|
19
|
0.7
|
%
|
2,878
|
2,905
|
27
|
0.9
|
%
|
(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 positions - mutual fund positions for which we receive recording keeping fees. An individual client account may include multiple mutual fund positions. We may also receive fees earned for custodial services that we provide to clients with retirement plan accounts that hold positions in these mutual funds.
|
Investment Portfolio - Summary of Holdings
|
PRIMERICA, INC.
Financial Supplement
|
As of or for the period ended September 30, 2017
|
||||||||||||||||||||||||||||
% 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
|
$
|
177,418
|
$
|
177,418
|
$
|
-
|
8.4
|
%
|
8.7
|
%
|
||||||||||||||||||
Fixed Income:
|
||||||||||||||||||||||||||||
Treasury
|
24,355
|
23,857
|
498
|
1.1
|
%
|
1.2
|
%
|
2.28
|
%
|
AAA
|
||||||||||||||||||
Government
|
177,296
|
171,351
|
5,946
|
8.4
|
%
|
8.4
|
%
|
3.46
|
%
|
AA-
|
||||||||||||||||||
Tax-Exempt Municipal
|
2,891
|
2,866
|
25
|
0.1
|
%
|
0.1
|
%
|
1.97
|
%
|
A-
|
||||||||||||||||||
Corporate
|
1,243,201
|
1,198,851
|
44,350
|
58.6
|
%
|
58.5
|
%
|
4.28
|
%
|
BBB+
|
||||||||||||||||||
Mortgage-Backed
|
113,966
|
109,793
|
4,173
|
5.4
|
%
|
5.4
|
%
|
3.64
|
%
|
AAA
|
||||||||||||||||||
Asset-Backed
|
77,593
|
77,032
|
561
|
3.7
|
%
|
3.8
|
%
|
2.66
|
%
|
AA
|
||||||||||||||||||
CMBS
|
127,910
|
125,766
|
2,144
|
6.0
|
%
|
6.1
|
%
|
3.16
|
%
|
AAA
|
||||||||||||||||||
Private
|
124,925
|
121,205
|
3,720
|
5.9
|
%
|
5.9
|
%
|
4.73
|
%
|
BBB
|
||||||||||||||||||
Redeemable Preferred
|
3,597
|
3,208
|
389
|
0.2
|
%
|
0.2
|
%
|
12.91
|
%
|
BBB+
|
||||||||||||||||||
Convertible
|
2,892
|
2,600
|
293
|
0.1
|
%
|
0.1
|
%
|
4.94
|
%
|
BBB
|
||||||||||||||||||
Total Fixed Income
|
1,898,627
|
1,836,528
|
62,099
|
89.4
|
%
|
89.6
|
%
|
4.04
|
%
|
A-
|
||||||||||||||||||
Equities:
|
||||||||||||||||||||||||||||
Perpetual Preferred
|
18,042
|
15,972
|
2,070
|
0.8
|
%
|
0.8
|
%
|
|||||||||||||||||||||
Common Stock
|
17,763
|
11,992
|
5,771
|
0.8
|
%
|
0.6
|
%
|
|||||||||||||||||||||
Mutual Fund
|
8,952
|
6,471
|
2,482
|
0.4
|
%
|
0.3
|
%
|
|||||||||||||||||||||
Other
|
1,805
|
1,805
|
-
|
0.1
|
%
|
0.1
|
%
|
|||||||||||||||||||||
Total Equities
|
46,563
|
36,240
|
10,323
|
2.2
|
%
|
1.8
|
%
|
|||||||||||||||||||||
Total Invested Assets
|
$
|
2,122,608
|
$
|
2,050,187
|
$
|
72,421
|
100.0
|
%
|
100.0
|
%
|
||||||||||||||||||
Corporate Portfolio by Sector
|
||||||||||||||||||||||||||||
Consumer Non Cyclical
|
$
|
143,613
|
$
|
138,516
|
$
|
5,097
|
11.6
|
%
|
11.6
|
%
|
||||||||||||||||||
Reits
|
140,516
|
135,788
|
4,728
|
11.3
|
%
|
11.3
|
%
|
|||||||||||||||||||||
Banking
|
138,220
|
135,011
|
3,209
|
11.1
|
%
|
11.3
|
%
|
|||||||||||||||||||||
Energy
|
135,223
|
130,236
|
4,986
|
10.9
|
%
|
10.9
|
%
|
|||||||||||||||||||||
Insurance
|
109,569
|
105,852
|
3,717
|
8.8
|
%
|
8.8
|
%
|
|||||||||||||||||||||
Technology
|
95,626
|
92,403
|
3,223
|
7.7
|
%
|
7.7
|
%
|
|||||||||||||||||||||
Communications
|
94,927
|
90,860
|
4,068
|
7.6
|
%
|
7.6
|
%
|
|||||||||||||||||||||
Capital Goods
|
80,418
|
77,355
|
3,063
|
6.5
|
%
|
6.5
|
%
|
|||||||||||||||||||||
Electric
|
71,341
|
68,002
|
3,339
|
5.7
|
%
|
5.7
|
%
|
|||||||||||||||||||||
Basic Industry
|
67,654
|
64,370
|
3,284
|
5.4
|
%
|
5.4
|
%
|
|||||||||||||||||||||
Consumer Cyclical
|
57,999
|
56,042
|
1,957
|
4.7
|
%
|
4.7
|
%
|
|||||||||||||||||||||
Transportation
|
46,097
|
44,984
|
1,114
|
3.7
|
%
|
3.8
|
%
|
|||||||||||||||||||||
Brokerage
|
31,145
|
29,576
|
1,569
|
2.5
|
%
|
2.5
|
%
|
|||||||||||||||||||||
Industrial Other
|
13,722
|
13,172
|
550
|
1.1
|
%
|
1.1
|
%
|
|||||||||||||||||||||
Natural Gas
|
8,477
|
8,194
|
283
|
0.7
|
%
|
0.7
|
%
|
|||||||||||||||||||||
Financial Other
|
6,122
|
6,099
|
23
|
0.5
|
%
|
0.5
|
%
|
|||||||||||||||||||||
Finance Companies
|
1,499
|
1,396
|
103
|
0.1
|
%
|
0.1
|
%
|
|||||||||||||||||||||
Utility Other
|
1,033
|
997
|
36
|
0.1
|
%
|
0.1
|
%
|
|||||||||||||||||||||
Total Corporate portfolio
|
$
|
1,243,201
|
$
|
1,198,851
|
$
|
44,350
|
100.0
|
%
|
100.0
|
%
|
||||||||||||||||||
Fixed-Maturity Securities - Effective Maturity
|
||||||||||||||||||||||||||||
Effective maturity
|
||||||||||||||||||||||||||||
< 1 Yr.
|
$
|
163,951
|
$
|
162,197
|
$
|
1,754
|
8.6
|
%
|
8.8
|
%
|
3.83
|
%
|
||||||||||||||||
1-2 Yrs.
|
249,463
|
240,529
|
8,934
|
13.1
|
%
|
13.1
|
%
|
4.96
|
%
|
|||||||||||||||||||
2-5 Yrs.
|
769,548
|
742,132
|
27,416
|
40.5
|
%
|
40.4
|
%
|
3.85
|
%
|
|||||||||||||||||||
5-10 Yrs.
|
660,276
|
640,652
|
19,624
|
34.8
|
%
|
34.9
|
%
|
3.91
|
%
|
|||||||||||||||||||
> 10 Yrs.
|
55,389
|
51,018
|
4,371
|
2.9
|
%
|
2.8
|
%
|
4.64
|
%
|
|||||||||||||||||||
Total Fixed Income
|
$
|
1,898,627
|
$
|
1,836,528
|
$
|
62,099
|
100.0
|
%
|
100.0
|
%
|
4.04
|
%
|
||||||||||||||||
Duration
|
||||||||||||||||||||||||||||
Fixed Income portfolio duration
|
3.8
|
years
|
||||||||||||||||||||||||||
Note: Investment Portfolio pages in this Financial Supplement exclude the Held to Maturity asset on our balance sheet. |
Investment Portfolio - Quality Ratings As of September 30, 2017
|
PRIMERICA, INC.
Financial Supplement
|
(Dollars in thousands)
|
||||||||||||||||||||||
Investment Portfolio Quality Ratings (1)
|
||||||||||||||||||||||
Amortized Cost
|
% of Total
|
|||||||||||||||||||||
Total Fixed Income portfolio:
|
||||||||||||||||||||||
Rating
|
||||||||||||||||||||||
AAA
|
$
|
342,424
|
18.6
|
%
|
||||||||||||||||||
AA
|
156,762
|
8.5
|
%
|
|||||||||||||||||||
A
|
413,724
|
22.5
|
%
|
|||||||||||||||||||
BBB
|
849,704
|
46.3
|
%
|
|||||||||||||||||||
Below Investment Grade
|
68,627
|
3.7
|
%
|
|||||||||||||||||||
NA
|
5,287
|
0.3
|
%
|
|||||||||||||||||||
Total Fixed Income
|
$
|
1,836,528
|
100.0
|
%
|
||||||||||||||||||
|
|
|
||||||||||||||||||||
Amortized Cost
|
% of Total
|
Amortized Cost
|
% of Total
|
|||||||||||||||||||
Corporate asset class:
|
|
Private asset class:
|
||||||||||||||||||||
Rating
|
|
Rating
|
||||||||||||||||||||
AAA
|
$
|
10,631
|
0.9
|
%
|
|
AAA
|
$
|
-
|
—
|
|||||||||||||
AA
|
70,365
|
5.9
|
%
|
|
AA
|
1,204
|
1.0
|
%
|
||||||||||||||
A
|
335,359
|
28.0
|
%
|
|
A
|
5,178
|
4.3
|
%
|
||||||||||||||
BBB
|
727,300
|
60.7
|
%
|
|
BBB
|
108,511
|
89.5
|
%
|
||||||||||||||
Below Investment Grade
|
55,017
|
4.6
|
%
|
|
Below Investment Grade
|
6,311
|
5.2
|
%
|
||||||||||||||
NA
|
178
|
0.0
|
%
|
|
|
NA
|
-
|
—
|
||||||||||||||
Total Corporate
|
$
|
1,198,851
|
100.0
|
%
|
|
Total Private
|
$
|
121,205
|
100.0
|
%
|
||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
CMBS asset class:
|
|
Mortgage-Backed asset class:
|
||||||||||||||||||||
Rating
|
|
|
Rating
|
|||||||||||||||||||
AAA
|
$
|
120,715
|
96.0
|
%
|
|
|
AAA
|
$
|
106,674
|
97.2
|
%
|
|||||||||||
AA
|
110
|
0.1
|
%
|
|
|
AA
|
1,342
|
1.2
|
%
|
|||||||||||||
A
|
3,112
|
2.5
|
%
|
|
|
A
|
347
|
0.3
|
%
|
|||||||||||||
BBB
|
-
|
—
|
|
|
BBB
|
1,431
|
1.3
|
%
|
||||||||||||||
Below Investment Grade
|
829
|
0.7
|
%
|
Below Investment Grade
|
-
|
—
|
||||||||||||||||
NA
|
1,000
|
0.8
|
%
|
|
|
NA
|
-
|
—
|
||||||||||||||
Total CMBS
|
$
|
125,766
|
100.0
|
%
|
|
Total Mortgage-Backed
|
$
|
109,793
|
100.0
|
%
|
||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
|
|
|||||||||||||||||||||
Asset-Backed asset class:
|
|
Treasury & Government asset classes:
|
||||||||||||||||||||
Rating
|
|
|
Rating
|
|||||||||||||||||||
AAA
|
$
|
45,343
|
58.9
|
%
|
|
|
AAA
|
$
|
58,526
|
30.0
|
%
|
|||||||||||
AA
|
5,606
|
7.3
|
%
|
|
|
AA
|
78,204
|
40.1
|
%
|
|||||||||||||
A
|
20,273
|
26.3
|
%
|
|
|
A
|
47,172
|
24.2
|
%
|
|||||||||||||
BBB
|
1,769
|
2.3
|
%
|
|
|
BBB
|
7,116
|
3.6
|
%
|
|||||||||||||
Below Investment Grade
|
189
|
0.2
|
%
|
|
Below Investment Grade
|
4,190
|
2.1
|
%
|
||||||||||||||
NA
|
3,853
|
5.0
|
%
|
|
|
NA
|
-
|
—
|
||||||||||||||
Total Asset-Backed
|
$
|
77,032
|
100.0
|
%
|
|
Total Treasury & Government
|
$
|
195,208
|
100.0
|
%
|
||||||||||||
NAIC Designations
|
||||||||||||||||||||||
1
|
$
|
691,950
|
45.1
|
%
|
||||||||||||||||||
2
|
774,258
|
50.5
|
%
|
|||||||||||||||||||
3
|
60,075
|
3.9
|
%
|
|||||||||||||||||||
4
|
6,663
|
0.4
|
%
|
|||||||||||||||||||
5
|
692
|
0.0
|
%
|
|||||||||||||||||||
6
|
655
|
0.0
|
%
|
`
|
||||||||||||||||||
U.S. Insurer Fixed Income (2)
|
1,534,294
|
100.0
|
%
|
|||||||||||||||||||
Other (3)
|
338,475
|
|||||||||||||||||||||
Cash and cash equivalents
|
177,418
|
|||||||||||||||||||||
Total Invested Assets
|
$
|
2,050,187
|
(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. |
Investment Portfolio - Supplemental Data and Trends
|
PRIMERICA, INC.
Financial Supplement
|
YOY Q3
|
||||||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
$
Change |
%
Change |
|||||||||||||||||||||||||||
Net Investment Income by Source
|
||||||||||||||||||||||||||||||||||||
Fixed-maturity securities (available-for-sale)
|
$
|
19,249
|
$
|
18,377
|
$
|
18,578
|
$
|
18,469
|
$
|
19,069
|
$
|
19,200
|
$
|
19,268
|
690
|
3.7
|
%
|
|||||||||||||||||||
Fixed-maturity securities (held-to-maturity)
|
4,154
|
4,605
|
4,957
|
5,164
|
5,718
|
6,087
|
7,231
|
2,274
|
45.9
|
%
|
||||||||||||||||||||||||||
Equity Securities
|
520
|
502
|
505
|
526
|
535
|
515
|
525
|
20
|
4.0
|
%
|
||||||||||||||||||||||||||
Deposit asset underlying 10% reinsurance treaty
|
2,200
|
2,185
|
1,058
|
(231
|
)
|
1,032
|
770
|
869
|
(189
|
)
|
-17.9
|
%
|
||||||||||||||||||||||||
Policy loans and other invested assets
|
330
|
352
|
317
|
342
|
305
|
317
|
395
|
78
|
24.6
|
%
|
||||||||||||||||||||||||||
Cash & cash equivalents
|
149
|
199
|
148
|
135
|
194
|
246
|
282
|
134
|
90.5
|
%
|
||||||||||||||||||||||||||
Total investment income
|
26,602
|
26,220
|
25,563
|
24,405
|
26,853
|
27,135
|
28,570
|
3,007
|
11.8
|
%
|
||||||||||||||||||||||||||
Investment expenses
|
1,210
|
1,226
|
1,208
|
1,242
|
1,241
|
1,306
|
1,417
|
209
|
17.3
|
%
|
||||||||||||||||||||||||||
Interest Expense on Surplus Note
|
4,154
|
4,605
|
4,957
|
5,164
|
5,718
|
6,087
|
7,231
|
2,274
|
45.9
|
%
|
||||||||||||||||||||||||||
Net investment income
|
$
|
21,238
|
$
|
20,389
|
$
|
19,398
|
$
|
17,999
|
$
|
19,894
|
$
|
19,742
|
$
|
19,922
|
524
|
2.7
|
%
|
|||||||||||||||||||
Fixed income book yield, end of period
|
4.46
|
%
|
4.40
|
%
|
4.29
|
%
|
4.21
|
%
|
4.18
|
%
|
4.11
|
%
|
4.04
|
%
|
||||||||||||||||||||||
New money yield
|
3.14
|
%
|
2.41
|
%
|
1.24
|
%
|
2.00
|
%
|
2.31
|
%
|
2.83
|
%
|
2.85
|
%
|
||||||||||||||||||||||
YOY Q3
|
||||||||||||||||||||||||||||||||||||
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
% Pt
Change |
|||||||||||||||||||||||||||||
Fixed Income Portfolio Quality Ratings
|
||||||||||||||||||||||||||||||||||||
Rating
|
||||||||||||||||||||||||||||||||||||
AAA
|
16.7
|
%
|
15.6
|
%
|
16.1
|
%
|
17.0
|
%
|
17.4
|
%
|
17.3
|
%
|
18.6
|
%
|
2.6
|
%
|
||||||||||||||||||||
AA
|
8.1
|
%
|
9.3
|
%
|
9.5
|
%
|
9.3
|
%
|
9.5
|
%
|
8.4
|
%
|
8.5
|
%
|
-1.0
|
%
|
||||||||||||||||||||
A
|
22.5
|
%
|
21.9
|
%
|
21.2
|
%
|
22.2
|
%
|
21.6
|
%
|
23.5
|
%
|
22.5
|
%
|
1.4
|
%
|
||||||||||||||||||||
BBB
|
46.3
|
%
|
47.5
|
%
|
47.7
|
%
|
45.8
|
%
|
46.0
|
%
|
45.8
|
%
|
46.3
|
%
|
-1.4
|
%
|
||||||||||||||||||||
Below Investment Grade
|
6.4
|
%
|
5.6
|
%
|
5.2
|
%
|
5.4
|
%
|
5.0
|
%
|
4.5
|
%
|
3.7
|
%
|
-1.5
|
%
|
||||||||||||||||||||
NA
|
0.0
|
%
|
0.1
|
%
|
0.4
|
%
|
0.3
|
%
|
0.4
|
%
|
0.3
|
%
|
0.3
|
%
|
-0.1
|
%
|
||||||||||||||||||||
Total Fixed Income
|
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-
|
na
|
As of September 30, 2017
|
As of September 30, 2017
|
As of September 30, 2017
|
|||||||||||||||||||||||||||||||
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
|
$
|
23,174
|
$
|
22,821
|
AAA
|
Canada
|
$
|
62,724
|
$
|
60,261
|
AAA
|
$
|
2,254
|
$
|
2,240
|
|||||||||||||||||
2
|
AT&T Inc
|
13,328
|
12,269
|
BBB+
|
Australia
|
58,810
|
56,642
|
AA
|
6,135
|
5,830
|
|||||||||||||||||||||||
3
|
National Rural Utilities Cooperative
|
11,086
|
10,276
|
A
|
|
United Kingdom
|
47,481
|
45,973
|
A |
14,333
|
13,714
|
||||||||||||||||||||||
4
|
General Electric Co
|
10,612
|
10,236
|
AA-
|
France
|
18,775
|
18,109
|
BBB
|
7,605
|
7,116
|
|||||||||||||||||||||||
5
|
Municipal Finance Authority of BC
|
9,802
|
9,910
|
AA-
|
Switzerland
|
17,606
|
17,337
|
Below Investment Grade
|
4,419
|
4,190
|
|||||||||||||||||||||||
6
|
Wells Fargo & Co
|
9,613
|
8,905
|
A
|
|
Bermuda
|
16,818
|
16,279
|
NA
|
0
|
0
|
||||||||||||||||||||||
7
|
Enbridge Inc
|
9,116
|
8,830
|
BBB+
|
Netherlands
|
14,972
|
13,839
|
Total
|
$
|
34,746
|
$
|
33,091
|
|||||||||||||||||||||
8
|
Province of Ontario Canada
|
9,017
|
8,643
|
A+
|
|
Ireland
|
14,151
|
13,649
|
|||||||||||||||||||||||||
9
|
Province of Alberta Canada
|
8,904
|
8,920
|
A+
|
|
Cayman Islands
|
13,464
|
13,218
|
|||||||||||||||||||||||||
10
|
TransCanada Corp
|
8,814
|
8,542
|
A-
|
Germany
|
11,384
|
11,231
|
Non-Government Investments (1)
|
|||||||||||||||||||||||||
11
|
National Fuel Gas Co
|
8,644
|
8,076
|
BBB
|
Belgium
|
10,193
|
9,714
|
||||||||||||||||||||||||||
12
|
American Airlines Group Inc
|
8,549
|
8,479
|
AA-
|
Japan
|
8,944
|
8,594
|
AAA
|
$
|
4,426
|
$
|
4,413
|
|||||||||||||||||||||
13
|
Goldman Sachs Group Inc/The
|
8,301
|
8,031
|
BBB+
|
Israel
|
8,478
|
8,211
|
AA
|
26,840
|
26,640
|
|||||||||||||||||||||||
14
|
City of Toronto Canada
|
8,154
|
8,202
|
AA
|
Brazil
|
7,917
|
7,620
|
A
|
103,569
|
100,692
|
|||||||||||||||||||||||
15
|
Anheuser-Busch InBev SA/NV
|
8,126
|
7,744
|
A-
|
Mexico
|
7,524
|
7,217
|
BBB
|
190,843
|
182,343
|
|||||||||||||||||||||||
16
|
HSBC Holdings PLC
|
8,010
|
7,792
|
A |
|
Emerging Markets (2)
|
10,104
|
9,478
|
Below Investment Grade
|
5,758
|
5,706
|
||||||||||||||||||||||
17
|
Australia & New Zealand Banking
|
7,634
|
7,496
|
AA-
|
All Other
|
37,094
|
35,768
|
NA
|
256
|
255
|
|||||||||||||||||||||||
18
|
Prudential Financial Inc
|
7,472
|
7,149
|
A |
|
Total |
$
|
366,439
|
$
|
353,140
|
Total
|
$
|
331,693
|
$
|
320,049
|
||||||||||||||||||
19
|
Brookfield Asset Management Inc
|
7,170
|
6,948
|
A-
|
|||||||||||||||||||||||||||||
20
|
SunTrust Banks Inc
|
6,983
|
6,896
|
BBB+
|
|||||||||||||||||||||||||||||
21
|
Apple Inc
|
6,851
|
6,731
|
AA+
|
|||||||||||||||||||||||||||||
22
|
Express Scripts Holding Co
|
6,808
|
6,527
|
BBB+
|
|||||||||||||||||||||||||||||
23
|
Ventas Inc
|
6,781
|
6,563
|
BBB+
|
|||||||||||||||||||||||||||||
24
|
Comcast Corp
|
6,743
|
6,479
|
A-
|
|||||||||||||||||||||||||||||
25
|
Penske Truck Leasing Co LP
|
6,690
|
6,610
|
BBB
|
|||||||||||||||||||||||||||||
|
Total
|
$
|
226,382
|
$
|
219,073
|
||||||||||||||||||||||||||||
|
% of total fixed income portfolio
|
10.7
|
%
|
10.7
|
%
|
(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. |
Five-Year Historical Key Statistics
|
PRIMERICA, INC.
Financial Supplement
|
(Dollars in millions)
|
2012
|
2013
|
2014
|
2015
|
2016
|
Q1
2016 |
Q2
2016 |
Q3
2016 |
Q4
2016 |
Q1
2017 |
Q2
2017 |
Q3
2017 |
||||||||||||||||||||||||||||||||||||
Recruits
|
191,752
|
186,251
|
190,439
|
228,115
|
262,732
|
63,427
|
65,273
|
73,706
|
60,326
|
70,983
|
78,273
|
90,210
|
||||||||||||||||||||||||||||||||||||
Life-insurance licensed sales force, beginning of period
|
91,176
|
92,373
|
95,566
|
98,358
|
106,710
|
106,710
|
108,220
|
112,365
|
115,345
|
116,827
|
117,907
|
121,471
|
||||||||||||||||||||||||||||||||||||
New life-licensed representatives
|
34,425
|
34,155
|
33,832
|
39,632
|
44,724
|
9,666
|
12,171
|
11,739
|
11,148
|
10,903
|
12,947
|
12,783
|
||||||||||||||||||||||||||||||||||||
Non-renewal and terminated representatives
|
(33,228
|
)
|
(30,962
|
)
|
(31,040
|
)
|
(31,280
|
)
|
(34,607
|
)
|
(8,156
|
)
|
(8,026
|
)
|
(8,759
|
)
|
(9,666
|
)
|
(9,823
|
)
|
(9,383
|
)
|
(9,818
|
)
|
||||||||||||||||||||||||
Life-insurance licensed sales force, end of period
|
92,373
|
95,566
|
98,358
|
106,710
|
116,827
|
108,220
|
112,365
|
115,345
|
116,827
|
117,907
|
121,471
|
124,436
|
||||||||||||||||||||||||||||||||||||
Issued term life policies
|
222,558
|
214,617
|
220,984
|
260,059
|
298,244
|
66,376
|
77,384
|
75,374
|
79,110
|
70,642
|
84,033
|
78,056
|
||||||||||||||||||||||||||||||||||||
Issued term life face amount
|
$
|
68,053
|
$
|
67,783
|
$
|
69,574
|
$
|
79,111
|
$
|
89,869
|
$
|
19,790
|
$
|
23,145
|
$
|
22,775
|
$
|
24,159
|
$
|
21,628
|
$
|
25,458
|
$
|
24,035
|
||||||||||||||||||||||||
Term life face amount in force, beginning of period
|
$
|
664,955
|
$
|
670,412
|
$
|
674,868
|
$
|
681,927
|
$
|
693,194
|
$
|
693,194
|
$
|
704,632
|
$
|
714,756
|
$
|
722,162
|
$
|
728,385
|
$
|
733,756
|
$
|
746,427
|
||||||||||||||||||||||||
Issued term life face amount
|
68,053
|
67,783
|
69,574
|
79,111
|
89,869
|
19,790
|
23,145
|
22,775
|
24,159
|
21,628
|
25,458
|
24,035
|
||||||||||||||||||||||||||||||||||||
Terminated term life face amount
|
(61,593
|
)
|
(57,730
|
)
|
(54,962
|
)
|
(53,580
|
)
|
(57,238
|
)
|
(13,814
|
)
|
(12,700
|
)
|
(14,407
|
)
|
(16,318
|
)
|
(16,704
|
)
|
(14,994
|
)
|
(16,331
|
)
|
||||||||||||||||||||||||
Foreign currency impact, net
|
(1,003
|
)
|
(5,596
|
)
|
(7,553
|
)
|
(14,263
|
)
|
2,560
|
5,462
|
(321
|
)
|
(962
|
)
|
(1,619
|
)
|
447
|
2,207
|
3,280
|
|||||||||||||||||||||||||||||
Term life face amount in force, end of period
|
$
|
670,412
|
$
|
674,868
|
$
|
681,927
|
$
|
693,194
|
$
|
728,385
|
$
|
704,632
|
$
|
714,756
|
$
|
722,162
|
$
|
728,385
|
$
|
733,756
|
$
|
746,427
|
$
|
757,411
|
||||||||||||||||||||||||
Estimated annualized issued term life premium
|
||||||||||||||||||||||||||||||||||||||||||||||||
Premium from new policies
|
$
|
176.1
|
$
|
173.5
|
$
|
179.8
|
$
|
212.4
|
$
|
245.2
|
$
|
54.0
|
$
|
63.1
|
$
|
61.9
|
$
|
66.2
|
$
|
59.4
|
$
|
70.2
|
$
|
65.8
|
||||||||||||||||||||||||
Additions and increases in premium
|
45.5
|
48.6
|
51.6
|
54.9
|
60.4
|
14.0
|
15.4
|
15.2
|
15.9
|
15.1
|
16.5
|
16.4
|
||||||||||||||||||||||||||||||||||||
Total estimated annualized issued term life premium
|
$
|
221.5
|
$
|
222.1
|
$
|
231.4
|
$
|
267.3
|
$
|
305.7
|
$
|
68.0
|
$
|
78.6
|
$
|
77.1
|
$
|
82.0
|
$
|
74.5
|
$
|
86.7
|
$
|
82.2
|
||||||||||||||||||||||||
Investment & Savings product sales
|
$
|
4,712.2
|
$
|
5,208.8
|
$
|
5,682.3
|
$
|
5,856.8
|
$
|
5,594.3
|
$
|
1,375.9
|
$
|
1,469.6
|
$
|
1,341.2
|
$
|
1,407.6
|
$
|
1,585.3
|
$
|
1,572.8
|
$
|
1,431.2
|
||||||||||||||||||||||||
Investment & Savings average client asset values
|
$
|
35,904
|
$
|
41,035
|
$
|
46,936
|
$
|
48,477
|
$
|
49,427
|
$
|
46,646
|
$
|
48,936
|
$
|
50,679
|
$
|
51,445
|
$
|
53,823
|
$
|
55,778
|
$
|
57,656
|
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