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Primerica, Inc. (PRI - Free Report) reported first-quarter 2017 operating income of $1.11 per share, which missed the Zacks Consensus Estimate of $1.15 by nearly 3.5%. Also, the bottom line improved 9% year over year.
The quarter witnessed improved Term Life net premiums on organic growth, partially offset by weaker persistency and claims experience. ISP performance was solid on improved sales and average client asset values. Share buybacks offered additional upside to the bottom line.
Operational Update
Operating revenues grew 11% year over year to $405 million on higher net premiums, and commissions and fees. Lower investment income was a partial offset. Revenues outpaced the Zacks Estimates Consensus of $382 million.
While Term Life Insurance revenues increased 14%, Investment and Savings Products revenues improved 12%. Corporate and Other Distributed Products revenues declined 6% year over year.
Life Licensed Sales Force had nearly 0.2 million representatives at the end of the first quarter, up 9% year over year.
Total benefits and expenses of $330.3 million were up 13 % year over year due to higher benefits and claims, insurance expenses, insurance commissions, and other operating expenses.
Adjusted operating income before taxes increased 5% year over year on 6% higher operating income at Term Life Insurance, 17% growth at Investment and Savings Products, and 69% surge in Corporate and Other Distributed Products.
Cash and cash equivalents were $185.7 million as of Mar 31, 2017, down 12.4% from Dec 31, 2016.
Total investments were $2.5 billion, up 4.2% from Dec 31, 2016.
Notes payable were $373 million, almost flat with 2016-end level.
Adjusted stockholders' equity totaled $1.2 billion, up 1.8% from the Dec 31, 2016 level.
Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was about 440% as of Dec 31, 2017.
Return on equity expanded 130 basis points to 16.9%.
Share Repurchase Update
Primerica spent $29.8 million to buy back 0.3 million shares in the quarter.
Zacks Rank
Primerica carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of other Insurers
Among the other players that have reported first-quarter earnings so far, Chubb Limited (CB - Free Report) beat the Zacks Consensus Estimate but RLI Corp. (RLI - Free Report) and The Progressive Corporation (PGR - Free Report) missed expectations.
The Best & Worst of Zacks
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Primerica (PRI) Q1 Earnings Miss, Revenues Beat Estimates
Primerica, Inc. (PRI - Free Report) reported first-quarter 2017 operating income of $1.11 per share, which missed the Zacks Consensus Estimate of $1.15 by nearly 3.5%. Also, the bottom line improved 9% year over year.
The quarter witnessed improved Term Life net premiums on organic growth, partially offset by weaker persistency and claims experience. ISP performance was solid on improved sales and average client asset values. Share buybacks offered additional upside to the bottom line.
Operational Update
Operating revenues grew 11% year over year to $405 million on higher net premiums, and commissions and fees. Lower investment income was a partial offset. Revenues outpaced the Zacks Estimates Consensus of $382 million.
While Term Life Insurance revenues increased 14%, Investment and Savings Products revenues improved 12%. Corporate and Other Distributed Products revenues declined 6% year over year.
Life Licensed Sales Force had nearly 0.2 million representatives at the end of the first quarter, up 9% year over year.
Total benefits and expenses of $330.3 million were up 13 % year over year due to higher benefits and claims, insurance expenses, insurance commissions, and other operating expenses.
Adjusted operating income before taxes increased 5% year over year on 6% higher operating income at Term Life Insurance, 17% growth at Investment and Savings Products, and 69% surge in Corporate and Other Distributed Products.
Primerica, Inc. Price, Consensus and EPS Surprise
Primerica, Inc. Price, Consensus and EPS Surprise | Primerica, Inc. Quote
Financial Update
Cash and cash equivalents were $185.7 million as of Mar 31, 2017, down 12.4% from Dec 31, 2016.
Total investments were $2.5 billion, up 4.2% from Dec 31, 2016.
Notes payable were $373 million, almost flat with 2016-end level.
Adjusted stockholders' equity totaled $1.2 billion, up 1.8% from the Dec 31, 2016 level.
Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was about 440% as of Dec 31, 2017.
Return on equity expanded 130 basis points to 16.9%.
Share Repurchase Update
Primerica spent $29.8 million to buy back 0.3 million shares in the quarter.
Zacks Rank
Primerica carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of other Insurers
Among the other players that have reported first-quarter earnings so far, Chubb Limited (CB - Free Report) beat the Zacks Consensus Estimate but RLI Corp. (RLI - Free Report) and The Progressive Corporation (PGR - Free Report) missed expectations.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>