We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Primerica's (PRI) Stock on the Rise Since Q3 Earnings Beat
Read MoreHide Full Article
Shares of Primerica, Inc. (PRI - Free Report) have gained 0.9% since it reported third-quarter 2023 results on Nov 8. The life-licensed sales force exhibited growth. The Term Life segment benefited from the size and stability of the in-force block, predictable margins and strong sales. Growth in client asset values favored Investment and Savings Products. Life-licensed sales force increased 4% at quarter end.
PRI delivered third-quarter 2023 operating income of $4.28 per share, which beat the Zacks Consensus Estimate by 6.2%. The bottom line improved 41.7%.
Operating revenues of $713 million in the third quarter beat the consensus mark by 1.6%. The metric rose 5.5% from the year-ago quarter.
Term Life Insurance revenues increased 3% year over year to $428.7 million, driven by 6% growth in adjusted direct premiums.
Investment and Savings Products revenues increased 9% to $218.9 million on higher sales-based commission revenues as well as asset-based revenues.
Corporate and Other Distributed Products revenues increased 22% to $52.1 million. Senior Health generated $13.4 million in revenues, down 22% year over year.
Life Insurance policies issued were 88,589, up 24.5% from the prior-year quarter’s figure. Investment and Savings Products sales were flat year over year at $2.2 billion in the third quarter.
Total benefits and expenses of $512.1 million were down 7.3% year over year on lower future policy benefits remeasurement and the absence of goodwill impairment loss.
Adjusted operating income before taxes increased 9% year over year, driven by a 7% increase in Term Life Insurance operating income and a 9% rise in Investment and Savings Products. Senior Health income plunged 104%. Adjusted operating income at Corporate and Other Distributed Products increased 193%.
Financial Update
Cash and cash equivalents were $468.8 million as of Sep 30, 2023, down from $489.2 million at 2022-end.
Total investments were $4.1 billion, up 0.6% from 2022-end.
Debt was $593.9 million, up from $592.9 million at 2022-end.
Stockholders’ equity totaled $2.3 billion, up 13.8% from 2022-end.
Primerica Life Insurance Company’s statutory risk-based capital ratio was about 445% as of Sep 30, 2023.
Capital Deployment Update
Primerica bought back shares worth $106.5 million in the third quarter and expects to exhaust the $375 million program by 2023 end.
The board of directors approved a dividend of 65 cents per share, to be paid out on Dec 12 to stockholders of record as of Nov 21, 2023.
Voya Financial (VOYA - Free Report) reported third-quarter 2023 adjusted operating earnings of $2.07 per share, which missed the Zacks Consensus Estimate by about 1%. The bottom line decreased 10% year over year, attributable to lower net underwriting results, partially offset by higher fee income. Adjusted operating revenues amounted to $281 billion, which decreased 21.1% year over year. The top line missed the Zacks Consensus Estimate by 16.4%.
Net investment income increased 4.8% year over year to $547 million. Meanwhile, fee income of $489 million increased 9.9% year over year. Premiums totaled $682 million, up 12.5% from the year-ago quarter. As of Sep 30, 2023, VOYA’s assets under management, assets under administration and advisement totaled $770.3 million.
Lincoln National Corporation (LNC - Free Report) reported third-quarter 2023 adjusted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by 86.9%. However, the bottom line significantly improved from a loss of $11.49 a year ago. Adjusted operating revenues grew 5.7% year over year to $4.7 billion. The top line missed the consensus mark by 1.6%.
The Annuities segment recorded an operating income of $248 million, which decreased 9.8% year over year and missed the estimate by 9%. The metric suffered from increased expenses. Operating income in the Retirement Plan Services segment came in at $43 million, which fell 9% year over year and missed our estimate of $47.1 million due to an elevated expense level. The Life Insurance segment reported an operating income of $173 million in the quarter under review, improving 92% year over year, as the year-ago income included massive unfavorable items. The Group Protection segment recorded an operating income of $68 million in the quarter under review, which rose from $12 million a year ago but was lower than our estimate. This significant year-over-year jump can be attributed to better disability underwriting results.
American Equity Investment Life Holding Company reported third-quarter 2023 adjusted net earnings of $2.45 per share, which beat the Zacks Consensus Estimate by 45.8%. The bottom line rebounded from the year-ago loss of 10 cents per share. Operating total revenues were $694.3 million, up 1.4% year over year due to higher annuity product charges and other revenues.
Premiums and other considerations decreased 6.4% year over year to $2.6 million. The figure was lower than our estimate of $3.2 million. Net investment income decreased 3.8% on a year-over-year basis to $586.6 million. The figure was higher than our estimate of $549.7 million. The investment spread was 2.73%, unchanged from the year-ago quarter.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Primerica's (PRI) Stock on the Rise Since Q3 Earnings Beat
Shares of Primerica, Inc. (PRI - Free Report) have gained 0.9% since it reported third-quarter 2023 results on Nov 8. The life-licensed sales force exhibited growth. The Term Life segment benefited from the size and stability of the in-force block, predictable margins and strong sales. Growth in client asset values favored Investment and Savings Products. Life-licensed sales force increased 4% at quarter end.
PRI delivered third-quarter 2023 operating income of $4.28 per share, which beat the Zacks Consensus Estimate by 6.2%. The bottom line improved 41.7%.
Operating revenues of $713 million in the third quarter beat the consensus mark by 1.6%. The metric rose 5.5% from the year-ago quarter.
Primerica, Inc. Price, Consensus and EPS Surprise
Primerica, Inc. price-consensus-eps-surprise-chart | Primerica, Inc. Quote
Operational Update
Term Life Insurance revenues increased 3% year over year to $428.7 million, driven by 6% growth in adjusted direct premiums.
Investment and Savings Products revenues increased 9% to $218.9 million on higher sales-based commission revenues as well as asset-based revenues.
Corporate and Other Distributed Products revenues increased 22% to $52.1 million. Senior Health generated $13.4 million in revenues, down 22% year over year.
Life Insurance policies issued were 88,589, up 24.5% from the prior-year quarter’s figure. Investment and Savings Products sales were flat year over year at $2.2 billion in the third quarter.
Total benefits and expenses of $512.1 million were down 7.3% year over year on lower future policy benefits remeasurement and the absence of goodwill impairment loss.
Adjusted operating income before taxes increased 9% year over year, driven by a 7% increase in Term Life Insurance operating income and a 9% rise in Investment and Savings Products. Senior Health income plunged 104%. Adjusted operating income at Corporate and Other Distributed Products increased 193%.
Financial Update
Cash and cash equivalents were $468.8 million as of Sep 30, 2023, down from $489.2 million at 2022-end.
Total investments were $4.1 billion, up 0.6% from 2022-end.
Debt was $593.9 million, up from $592.9 million at 2022-end.
Stockholders’ equity totaled $2.3 billion, up 13.8% from 2022-end.
Primerica Life Insurance Company’s statutory risk-based capital ratio was about 445% as of Sep 30, 2023.
Capital Deployment Update
Primerica bought back shares worth $106.5 million in the third quarter and expects to exhaust the $375 million program by 2023 end.
The board of directors approved a dividend of 65 cents per share, to be paid out on Dec 12 to stockholders of record as of Nov 21, 2023.
Zacks Rank
Primerica currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Voya Financial (VOYA - Free Report) reported third-quarter 2023 adjusted operating earnings of $2.07 per share, which missed the Zacks Consensus Estimate by about 1%. The bottom line decreased 10% year over year, attributable to lower net underwriting results, partially offset by higher fee income. Adjusted operating revenues amounted to $281 billion, which decreased 21.1% year over year. The top line missed the Zacks Consensus Estimate by 16.4%.
Net investment income increased 4.8% year over year to $547 million. Meanwhile, fee income of $489 million increased 9.9% year over year. Premiums totaled $682 million, up 12.5% from the year-ago quarter. As of Sep 30, 2023, VOYA’s assets under management, assets under administration and advisement totaled $770.3 million.
Lincoln National Corporation (LNC - Free Report) reported third-quarter 2023 adjusted earnings of 23 cents per share, which missed the Zacks Consensus Estimate by 86.9%. However, the bottom line significantly improved from a loss of $11.49 a year ago. Adjusted operating revenues grew 5.7% year over year to $4.7 billion. The top line missed the consensus mark by 1.6%.
The Annuities segment recorded an operating income of $248 million, which decreased 9.8% year over year and missed the estimate by 9%. The metric suffered from increased expenses. Operating income in the Retirement Plan Services segment came in at $43 million, which fell 9% year over year and missed our estimate of $47.1 million due to an elevated expense level. The Life Insurance segment reported an operating income of $173 million in the quarter under review, improving 92% year over year, as the year-ago income included massive unfavorable items. The Group Protection segment recorded an operating income of $68 million in the quarter under review, which rose from $12 million a year ago but was lower than our estimate. This significant year-over-year jump can be attributed to better disability underwriting results.
American Equity Investment Life Holding Company reported third-quarter 2023 adjusted net earnings of $2.45 per share, which beat the Zacks Consensus Estimate by 45.8%. The bottom line rebounded from the year-ago loss of 10 cents per share. Operating total revenues were $694.3 million, up 1.4% year over year due to higher annuity product charges and other revenues.
Premiums and other considerations decreased 6.4% year over year to $2.6 million. The figure was lower than our estimate of $3.2 million. Net investment income decreased 3.8% on a year-over-year basis to $586.6 million. The figure was higher than our estimate of $549.7 million. The investment spread was 2.73%, unchanged from the year-ago quarter.