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Primerica's (PRI) Share Rise as Q4 Earnings Beat Estimates
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Shares of Primerica, Inc. (PRI - Free Report) gained nearly 9% in the last trading session as the company surpassed earnings expectations. PRI delivered fourth-quarter 2022 operating income of $3.49 per share, which beat the Zacks Consensus Estimate by 18.7%. The bottom line improved 18.7%, reflecting better performance at the Term Life Insurance and Senior Health business.
Operating revenues dropped 5.3% year over year to $684.5 million due to lower contributions from the Investment and Savings Products segment. Revenues missed the Zacks Consensus Estimate by about 1%.
Term Life Insurance revenues increased 5% year over year to $430.1 million, driven by 68% growth in adjusted direct premiums.
Investment and Savings Products revenues dropped 10% to $198.3 million. Corporate and Other Distributed Products revenues declined 5% to $28.2 million. Senior Health generated $27.9 million in revenues in the reported quarter, down 26% year over year.
Life Insurance policies issued in the quarter were 72,544 new term life insurance policies, down 4%. Investment and Savings Products sales declined 31% to $2.1 billion in the fourth quarter.
Total benefits and expenses of $519.4 million were down 21% year over year.
Adjusted operating income before taxes increased 10% year over year, driven by a 23% increase in Term Life Insurance operating income and more than 11-fold rise in Senior Health operating income. Investment and Savings Products income dropped 17%.
Financial Update
Cash and cash equivalents were $489.2 million as of Jun 30, 2022, up 24.6% from the level on Dec 31, 2021.
Total investments were $4.1 billion, down 3.9% from the figure as of Dec 31, 2021.
Debt was $592.9 million, up 0.01% from the 2021-end level.
Stockholders’ equity totaled $1.7 billion, down 17.3% from the level on Dec 31, 2021.
Primerica Life Insurance Company’s statutory risk-based capital ratio was about 475% as of Jun 30, 2022
Capital Deployment Update
Primerica bought back shares worth $356.2 million in 2022. PRI has $375 million worth of share repurchase program for 2023.
The board of directors approved a dividend of 65 cents per share, to be paid out on Mar 14, 2022, to stockholders of record as of Feb 21, 2022.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported fourth-quarter 2022 adjusted operating income of $2.99 per share, which missed the Zacks Consensus Estimate by 14.8%. RGA had incurred an operating loss of 56 cents per share in the prior-year quarter.
Operating revenues of $4.4 billion increased 2.2% year over year. The top line beat the Zacks Consensus Estimate by 1.2%. Net premiums of $3.4 billion rose 1.1% year over year.
Voya Financial (VOYA - Free Report) reported fourth-quarter 2022 adjusted operating earnings of $2.18 per share, which surpassed the Zacks Consensus Estimate by 42.5%. The bottom line increased 14.7% year over year.
Adjusted operating revenues amounted to $1.5 billion, which decreased 4.4% year over year. Premiums totaled $610 million, up 12.1% from the year-ago quarter.
Sun Life Financial (SLF - Free Report) reported fourth-quarter 2022 adjusted operating income of $1.25 per share, beating the Zacks Consensus Estimate by 7.8%. The bottom line increased 3.3% year over year. The underlying net income of $729 million (C$990 million) was up 10% year over year, which was driven by earnings growth in the United States and Canada.
Insurance sales increased 14.8% year over year to $1.3 billion (C$1.8 billion), driven by increased sales in Canada, Asia and the United States. Wealth sales were $33.6 billion (C$45.6 billion), down 17% year over year. The value of the new business decreased 5.3% to $345 million (C$468 million).
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Primerica's (PRI) Share Rise as Q4 Earnings Beat Estimates
Shares of Primerica, Inc. (PRI - Free Report) gained nearly 9% in the last trading session as the company surpassed earnings expectations. PRI delivered fourth-quarter 2022 operating income of $3.49 per share, which beat the Zacks Consensus Estimate by 18.7%. The bottom line improved 18.7%, reflecting better performance at the Term Life Insurance and Senior Health business.
Primerica, Inc. Price, Consensus and EPS Surprise
Primerica, Inc. price-consensus-eps-surprise-chart | Primerica, Inc. Quote
Operational Update
Operating revenues dropped 5.3% year over year to $684.5 million due to lower contributions from the Investment and Savings Products segment. Revenues missed the Zacks Consensus Estimate by about 1%.
Term Life Insurance revenues increased 5% year over year to $430.1 million, driven by 68% growth in adjusted direct premiums.
Investment and Savings Products revenues dropped 10% to $198.3 million. Corporate and Other Distributed Products revenues declined 5% to $28.2 million. Senior Health generated $27.9 million in revenues in the reported quarter, down 26% year over year.
Life Insurance policies issued in the quarter were 72,544 new term life insurance policies, down 4%. Investment and Savings Products sales declined 31% to $2.1 billion in the fourth quarter.
Total benefits and expenses of $519.4 million were down 21% year over year.
Adjusted operating income before taxes increased 10% year over year, driven by a 23% increase in Term Life Insurance operating income and more than 11-fold rise in Senior Health operating income. Investment and Savings Products income dropped 17%.
Financial Update
Cash and cash equivalents were $489.2 million as of Jun 30, 2022, up 24.6% from the level on Dec 31, 2021.
Total investments were $4.1 billion, down 3.9% from the figure as of Dec 31, 2021.
Debt was $592.9 million, up 0.01% from the 2021-end level.
Stockholders’ equity totaled $1.7 billion, down 17.3% from the level on Dec 31, 2021.
Primerica Life Insurance Company’s statutory risk-based capital ratio was about 475% as of Jun 30, 2022
Capital Deployment Update
Primerica bought back shares worth $356.2 million in 2022. PRI has $375 million worth of share repurchase program for 2023.
The board of directors approved a dividend of 65 cents per share, to be paid out on Mar 14, 2022, to stockholders of record as of Feb 21, 2022.
Zacks Rank
Primerica currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Reinsurance Group of America, Incorporated (RGA - Free Report) reported fourth-quarter 2022 adjusted operating income of $2.99 per share, which missed the Zacks Consensus Estimate by 14.8%. RGA had incurred an operating loss of 56 cents per share in the prior-year quarter.
Operating revenues of $4.4 billion increased 2.2% year over year. The top line beat the Zacks Consensus Estimate by 1.2%. Net premiums of $3.4 billion rose 1.1% year over year.
Voya Financial (VOYA - Free Report) reported fourth-quarter 2022 adjusted operating earnings of $2.18 per share, which surpassed the Zacks Consensus Estimate by 42.5%. The bottom line increased 14.7% year over year.
Adjusted operating revenues amounted to $1.5 billion, which decreased 4.4% year over year. Premiums totaled $610 million, up 12.1% from the year-ago quarter.
Sun Life Financial (SLF - Free Report) reported fourth-quarter 2022 adjusted operating income of $1.25 per share, beating the Zacks Consensus Estimate by 7.8%. The bottom line increased 3.3% year over year. The underlying net income of $729 million (C$990 million) was up 10% year over year, which was driven by earnings growth in the United States and Canada.
Insurance sales increased 14.8% year over year to $1.3 billion (C$1.8 billion), driven by increased sales in Canada, Asia and the United States. Wealth sales were $33.6 billion (C$45.6 billion), down 17% year over year. The value of the new business decreased 5.3% to $345 million (C$468 million).