Duluth-based Primerica Donates $100K to Atlanta Food Bank 

Raisa Habersham, The Atlanta Journal-Constitution, May 6, 2020

Duluth – Duluth-based financial services company Primerica donated $100,000 to the Atlanta Community Food Bank to help those needing food during the COVID-19 pandemic, according to a news release.

The company donated the money through its philanthropic organization, The Primerica Foundation, in response to the growing demand at food banks, according to the release. The funds will also help increase refrigeration and storage capacity for fresh produce and perishables.

“Many in our area are facing unprecedented challenges in meeting their most essential needs,” Kathryn Kieser, Chairman and President of The Primerica Foundation. “Primerica is committed to helping people improve their financial well-being and helping them successfully navigate these uncharted waters.”

The food bank will be able to purchase roughly 30,000 pounds of food that could feed up to 25,000 people, according to the release.

 

1180148


Primerica donating 5,000 medical masks, 100,000 alcohol wipes to Gwinnett health officials

Gwinnett Daily Post, April 2, 2020

Duluth - Gwinnett County’s health department is getting thousands of medical masks and alcohol wipes from Primerica to help with the response to the COVID-19 coronavirus disease outbreak.

Duluth-based Primerica announced on Thursday that it is donating 5,000 medical masks and 100,000 alcohol wipes to the health department. The goal is for health officials to distribute those supplies to medical providers throughout the county as needed.

The donation comes at a time when there is a high demand for personal protective equipment and other medical supplies to handle a sharp rise in people going to the hospital because of the outbreak.

“We acquired these masks and alcohol wipes years ago as part of our emergency preparedness efforts for use by employees in the event of a future medical crisis,” Primerica CEO Glenn Williams said in a statement.

“Given the pressing need at area hospitals and clinics, we are donating these materials to help ensure our frontline heroes are protected as they work to combat COVID-19.”

1142470


20 New Jobs Available at Technology Innovation Center in Gwinnett

Karen Huppertz, Atlanta Journal-Constitution, October 31, 2019

Primerica, Inc., a provider of financial services to middle income families, has opened Primerica Technology Innovation Center on Breckinridge Boulevard in unincorporated Gwinnett. The 38,000-square-foot facility, with room for over 200 employees, will serve as the epicenter of the company’s digital initiatives and business growth.

“After several years of rapid growth, the employee count at our headquarters in Gwinnett County has nearly reached capacity with over 1,800 employees,” said Glenn Williams, Primerica Chief Executive Officer. “We are excited to be relocating a large portion of our IT team to a new, state-of-the-art facility that provides our teammates with an open-concept, highly collaborative work environment. Continuing to enhance our technological capabilities is vital to our ongoing growth and is strategically important for our company.”

In the past year, Primerica added more than 80 new jobs, with over half of those being new technology positions. The company currently has approximately 20 new technology positions available.

Headquartered in Duluth, Primerica has been named a Top Workplace by the Atlanta Journal Constitution for six consecutive years from 2014 – 2019 and in 2019, Forbes named Primerica to its 2019 list of America Best Employers for Women.

1006053


Primerica Opens New Technology Innovation Center

Curt Yeomans, Gwinnett Daily Post, October 29, 2019

Primerica officials are not only looking to the future as far as how new technologies will help them serve their customers, they are now figuring out ways to make it happen.

The company teamed up with Partnership Gwinnett to unveil its new Primerica Technology Innovation Center on Breckinridge Boulevard in the Duluth area on Monday.

The 38,000-square-foot center is designed to give employees tools to “accelerate digital initiatives” and spur growth for the company, according to Primerica and Partnership Gwinnett.

“After several years of rapid growth, the employee count at our headquarters in Gwinnett County has nearly reached capacity with over 1,800 employees,” Primerica Chief Executive Officer Glenn Williams said.

“We are excited to be relocating a large portion of our IT team to a new, state-of-the-art facility that provides our teammates with an open-concept, highly collaborative work environment. Continuing to enhance our technological capabilities is vital to our ongoing growth and is strategically important for our company.”

Primerica has added about 80 new jobs in the last year and more than half of them were technology-related positions. There are about 20 technology-related jobs available at the company.

The new center will feature an open space layout with workstations designed to not only attract and retain talented workers, but also encourage collaboration and innovation among employees. It is expected to house about 200 Primerica employees.

“Companies who relocate or start their business in Gwinnett are always exciting projects, but when an existing company, like Primerica, chooses to reinvest in our community and grow in place that is the highest compliment we can receive,” Partnership Gwinnett Vice President of Economic Development Andrew Carnes said.

“This kind of announcement is a testament to the business climate and unparalleled workforce found in Gwinnett County.”

County Commissioner Jace Brooks was equally enthusiastic about the center’s opening.

“Gwinnett provides the environment, talent and infrastructure that successful companies like Primerica need to flourish,” he said. “Primerica is a valued member of the Gwinnett Community and we congratulate them on their continued growth and success.”

998635


For Primerica, Gwinnett Great Days of Service Is Chance to Offer Large Scale Help to Community

Curt Yeomans, Gwinnett Daily Post, October 27, 2019

After three hours of hammering, gluing and fastening tiny libraries together Friday morning, Primerica volunteers participating in the annual Gwinnett Great Days of Service at Annandale Village let out a cheer.

The reason for the celebration? It wasn't because the group of 48 volunteers was done for the day. It was because they had surpassed their goal of building 60 tiny libraries for a joint project of the Community Foundation of Northeast Georgia and the Gwinnett Coalition for Health and Human Services.

In fact, the Primerica volunteers surpassed their goal by about one-third.

"Alright everyone, we've built 80 libraries so far," said Primerica Vice President of Human Resources Laura Gibbs, prompting the cheers.

Primerica has been a regular partner in the coalition's Gwinnett Great Days of Service, which began with projects on Friday and continued Saturday, for years. This year marked the 20th anniversary of Gwinnett Great Days of Service.

More than 50 community service projects were scheduled to take place throughout Gwinnett over a two-day period, according to the Gwinnett Great Days of Service website.

Projects undertaken by about 3,000 volunteers from business, churches, community groups and individual volunteers over the two-day period benefit organizations such as the HomeFirst Gwinnett Initiative; the Lawrenceville Cooperative Ministry; Sleep In Heavenly Peace-GA, Gwinnett County; and the Salvation Army of Gwinnett County.

Projects also addressed a range of community issues ranging from increasing access to books in so-called "literacy desserts" in the county to cleaning up garbage along waterways.

In the past, Primerica has done outdoor projects, such as building gardens and bocce courts for Annandale Village, for the county-wide service effort.

"Primerica always engages their employees in volunteer service, and we’re just thankful," Gwinnett Coalition Chief Operating Officer Keith Fenton said. "The impact that they'e going to have on this (tiny library) project is immeasurable."

The company's employees are involved in several other community service activities as well, including helping the Alzheimer's Association with next weekend's Walk to End Alzheimer's in Duluth. Primerica is that event's presenting sponsor.

Primerica also does food drives, blanket drives, sponsors Gwinnett Relay For Life and participates in the annual Can-A-Thon. Earlier this year, it donated a vehicle to the Red Cross to help with blood drives — and held a blood drive of its own.

“Anywhere there’s a need, you’ll see Primerica faces there,” Primerica Programs and Events Coordinator Roxanne Tigue said.

This year’s participation in Gwinnett Great Days of Service was a bit different for Primerica since the tiny library build was an indoor project.

Primerica consulted the Gwinnett Coalition for advice on projects that a greater number of employees could volunteer for regardless of skill level. Gibbs said the literacy aspect of the project also made it appealing to the company.

“It’s awesome what we’re doing for the community as far as the early learning to help those 0-5 (kids) get the right start,” Gibbs said.

That’s part of how Primerica approaches community projects.

“We look for projects that are large in scale and where we can make a difference in the community,” Gibbs said.

The coalition suggested the tiny libraries project. Before Friday, students at Maxwell High School prepared the pieces for assembly and Primerica employees then put them together Friday while the coalition brought in another group of volunteers to finish up on Saturday.

The libraries will be placed around the county in places — such as extended stay hotels, parks, co-ops or low income residential communities — that don’t have easy access to early learning books for kids under 5.

“What we’ve found is that with the brain growing as fast as it grows — from the time a child is born, we have 700 neurons per second being made — the brain will grow more in the first five years than the rest of your life,” Community Foundation of Northeast Georgia Early Learning Taskforce member John Upchurch said.

“That’s one of the reasons why this is so important.”

So once Primerica settled on the tiny library project, Gibbs and Tigue put out a call for volunteers to the company’s employees to help with the project.

Their goal was to get 40 volunteers.

Forty-eight signed up.

“We would have had more than that but we had to cut off at a certain point,” Tigue said.

Gibbs later added, “We’re always turning people away depending on the scope of the project. So that’s what we always ask the coalition for in advance: What are some of the larger scale project that are going to be done that day (to get more volunteer opportunities)?”

That — and the fact that the volunteers built 20 more tiny libraries than they had planned to assemble — is why Tigue described Primerica’s employees a group of overachievers.

“This is a community of do-ers,” Tigue said. “It’s part of the Primerica culture. They give back. We’ve got so many opportunities to volunteer at work. All we have to do is just say we’re doing something and people step up.”

1006042


Primerica Schedules Third Quarter 2019 Financial Results

Primerica, Inc. (NYSE: PRI) announced today that it will hold a webcast on Thursday, November 7, 2019 at 10:00 a.m. Eastern Time to discuss the Company's results for the third quarter ended September 30, 2019, as well as other business-related matters. A news release announcing the quarter’s results will be distributed on Wednesday, November 6, 2019, after the close of the market.

The earnings news release, financial supplement and live webcast will be available on the Primerica Investors website at http://investors.primerica.com. A replay of the call will be available for approximately 30 days.

988733


Primerica’s Board of Directors Elects Sanjeev Dheer as a Board Member

Press Release - Duluth, GA, October 1, 2019

Primerica, Inc. (NYSE: PRI) today announced the election of Sanjeev Dheer to the Company’s Board of Directors effective immediately. Mr. Dheer has been the Founder and Chief Executive Officer of CENTRL, a privacy management and risk platform for enterprises, since September 2015. He previously served as a consultant to Apple Inc. in the payments area from July 2014 to August 2015. In November 1999, Mr. Dheer founded CashEdge, a pioneer in developing innovative payments products for banks, which was acquired by Fiserv, a global leader in fintech and payments, in 2011. He led the CashEdge business division at Fiserv from September 2011 to June 2013. In addition, Mr. Dheer served as a Principal at McKinsey & Co., where he worked from September 1992 to October 1999. Mr. Dheer received an MBA from Stanford Business School where he was an Arjay Miller Scholar, an MA in Computer Science from Queens College, City University of New York, an MA in Economics from Washington State University, and a BA and MA in History from Delhi University. He has authored over 14 patents.

“We are thrilled to have Mr. Dheer join our Board,” said D. Richard Williams, Chairman of the Board of Primerica. “He is an expert in fintech and consumer-facing digital technologies and he has an entrepreneurial background.” Mr. Dheer said “I am excited about joining the Primerica Board. I’ve been familiar with the company for quite some time and I am looking forward to bringing my skills and experience in technology and strategic planning to the Board.”

968545


AM Best Affirms Credit Ratings of Primerica, Inc. and Its Subsidiaries

BusinessWire, September 25, 2019

AM Best has affirmed the Financial Strength Rating of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” of Primerica Life Insurance Company (Nashville, TN) and its affiliates, National Benefit Life Insurance Company (Long Island City, NY) and Primerica Life Insurance Company of Canada (Mississauga, Ontario), collectively referred to as Primerica Life. Additionally, AM Best has affirmed the Long-Term ICR of “a-” of Primerica, Inc. (Primerica) (headquartered in Duluth, GA) [NYSE: PRI], which is the holding company for the group’s insurance and non-insurance operating companies. AM Best also has affirmed the Long-Term Issue Credit Rating of “a-” on $375 million 4.75% senior unsecured notes due 2022 of Primerica. The outlook of these Credit Ratings (ratings) is stable.

The ratings reflect Primerica Life’s balance sheet strength, which AM Best categorizes as very strong, as well as its very strong operating performance, favorable business profile and appropriate enterprise risk management (ERM).

Primerica Life’s ratings recognize the group’s continued risk-adjusted capitalization assessed at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), along with the quality of its investments and favorable reserve profile, although allocation to NAIC class 2 bonds is higher than the industry average. Risk-adjusted capitalization ratios reflect a heavy reliance on captive reinsurance solutions to fund its Regulation XXX reserves associated with term life insurance, which gradually will moderate as new business is issued under principles-based reserving practices. The ratings also reflect strong liquidity, as well as solid financial leverage and interest coverage ratios that are within AM Best guidelines for these ratings.

AM Best believes that the quality of capital for an insurance operating company that has ceded XXX or AXXX reserves to a domestic or offshore captive is not as strong as for an operating company with similar risk-adjusted capital ratios that self-funds these reserves. The statutory capital growth of the operating insurance companies likely will be constrained by dividends to its ultimate parent, Primerica, which have been utilized to support higher levels of share repurchase.

Primerica Life’s earnings have been consistent with AM Best’s expectations, as the group continuously has generated solid levels of GAAP and statutory net income. There has been a continued adequate direct premium growth trend, offset by above-industry-average lapse rates. General expenses per policy also have been on an upward trend and have risen further in the current year. Statutory net income also has benefited from a reinsurance transaction entered into at the time of Primerica’s initial public offering in 2010, as statutory accounting rules require that the gain on the reinsured business be deferred and recognized as income as actual experience emerges. AM Best expects Primerica Life to maintain an underlying trend of statutory profitability of the insurance operating companies. Primerica Life’s operating profile benefits from non-insurance revenues that represent a substantial portion of overall GAAP revenues through the sale of mutual funds and other savings products, along with distribution of other manufacturers’ life and annuity products, which generates fee-based revenues and provides a source of earnings diversification.

Primerica Life’s ratings also recognize its status as one of the largest writers of term life insurance in the United States, with its continued strong market position attributable to its dedicated distribution affiliate, Primerica Financial Services, LLC. This integrated distribution and operating platform included over 130,000 life agents at the end of 2018. Primerica Life’s business profile in the United States and Canada is reinforced further by its experienced management team, which successfully built and supports its sizable sales force. Low agent retention levels require a high level of recruiting each year to maintain a competitive advantage. Offsetting these positive rating factors is Primerica Life’s somewhat narrow business profile focus on term life products, with generally stable persistency that is still in line with pricing.

AM Best is a global credit rating agency and information provider with an exclusive focus on the insurance industry. Visit www.ambest.com for more information.


Primerica Extends Support of American Red Cross with Blood Van Donation

Gwinnett Post Daily, August 15, 2019

Primerica employees have given a lot to the American Red Cross over the last two decades.

They've given nearly 3,000 pints of blood, actually.

The company and its Primerica Foundation took that support a step further Wednesday when they donated a new Dodge RAM Promaster City Van to the Red Cross. The vehicle was presented to local officials from the nonprofit during a brief ceremony at Primerica's headquarters in Duluth.

"This was a way we could compliment (the employees') contributions and their efforts with something that the Primerica Foundation could do — kind of like a tangible representation of our support in addition to the more practical blood drive," Primerica CEO Glenn Williams said.

"There was a tremendous need at the Red Cross for this so it kind of came together that we wanted to do something a little extra and they had a need and it fit together perfectly."

The van will be based out of the Red Cross' collection center in Douglasville. The organization will use it to pick up blood donated at blood drives held around the metro Atlanta area, according to Red Cross spokeswoman Ashley Henyan.

"It's a life saver," she said. "We're thankful to Primerica to be able to put this life-saving vehicle on the road. It'll be part of a fleet of cars, trucks and vans that transportation blood and blood products to hospitals and volunteers to donation sites."

Although blood drives are routinely promoted as a way to help others who are in need of blood, they are more beneficial than some people may realize. Henyan said a one pint bag of blood can be used to help as many as three people.

And that is why the Red Cross sees the vehicle donated by the Primerica Foundation as being so important to its efforts.

"We're a national network so we have the unique ability to move blood to where it's needed the most," Henyan said. "Local needs are prioritized as far as transporting blood, and then we can send it to where it's most needed in the country."

Primerica Foundation Chairwoman Kathryn Kieser said the company runs four blood drives each year for the Red Cross and that talks about donating a van began in the early part of the year.

"We work very closely with them but I think we began talking about it in March," Kieser said.

And while it is listed as a donation from the Primerica Foundation because it purchased the van, the company's employees had a key hand in making it happen.

That's because the employees are heavily involved in raising money for the foundation.

"The foundation is supported through corporate donations, but also through employee donations so the employees also support the foundation financially with their own financial gifts," Williams said.

Kieser said it was easy to get the Primerica community behind the effort to donate the blood van.

"It's pretty easy to get people behind the Primerica Foundation because our whole mission is to create more self-sufficient families and clearly health is a part of that," she said.

Primerica did not just donate a van to the Red Cross on Wednesday, however. It also held a blood drive so employees could drop by on a break and give a pint of blood.

Primerica employee Judy Thomas said she tries to give blood when she can since her blood type is O-Negative.

Thomas has given more than five gallons of blood over the years.

"Once I found out I was O-Negative and that I was a universal donor and would be constantly needed, it's something that became of extreme importance to me because I know much (the Red Cross will) need that," Thomas said as she squeezed a foam bar to keep blood flowing into a bag.

"It just means a lot to me."

Another Primerica employee, Tiffany Pike, was giving blood at the station next to Thomas. She said she has given blood about four times now.

Pike's inspiration is her family, who share her A-positive blood type.

"It's one of those (situations where) if something happens to them, I want to be there for them," Pike said.

Pike also said she wants to set an example for others to give blood as well.

"Hopefully, if I do it, it motivates my immediate friends to do it because both of my friends are O-Negs," Pike said. "It's like, 'If I'm going to do it, you should go do it too.'"

929574


Primerica Reports Second Quarter 2019 Results

Business Wire, August 07, 2019

Investment and Savings Products reach record levels in sales and ending client asset values

Term Life net premiums grow 9%; adjusted direct premiums grow 11%

Net earnings per diluted share (EPS) of $2.28, up 17%; return on stockholders’ equity (ROE) of 25.1%

Adjusted operating EPS of $2.21, up 14%; adjusted net operating income return on adjusted stockholders’ equity (ROAE) of 25.1%

Declared dividend of $0.34 per share, payable on September 13, 2019

Primerica, Inc. (NYSE: PRI) today announced financial results for the quarter ended June 30, 2019. Total revenues of $504.9 million increased 8% compared to the second quarter of 2018. Net income of $97.4 million increased 12%, while earnings per diluted share of $2.28 increased 17% compared to the same quarter last year. ROE increased to 25.1% during the current quarter from 24.5% during the second quarter of 2018.

Adjusted operating revenues were $501.4 million, increasing 7% compared to the second quarter of 2018. Adjusted net operating income of $94.8 million increased 10%, while adjusted operating earnings per diluted share of $2.21 increased 14% compared to the same quarter last year. ROAE increased to 25.1% during the current quarter from 24.5% during the second quarter of 2018.

Key factors contributing to the quarter’s financial results were 11% growth in Term Life adjusted direct premiums year-over-year and the financial benefit of record sales and client asset values in the Investment and Savings Products (ISP) segment. Insurance and other operating expenses grew by a modest 2%, while other expenses such as commissions, benefits and claims and DAC amortization grew in line with their related revenues. The company repurchased $57.1 million of common stock during the quarter and is on track to achieve its $225 million repurchase target for the year.

“Our quarterly financial results reflect the strength of our model with net income growth of 12% and earnings per share growth of 17%,” said Glenn Williams, Chief Executive Officer. “Our biennial convention in June was a great success. It energized our sales force, accelerated momentum and renewed our commitment to serve middle-income families as only Primerica can.”

Second Quarter Distribution & Segment Results

Distribution Results

Q2 2019 Q2 2018 % Change
Life Licensed Sales Force (1) 129,550

130,156

*

Recruits

86,173

76,520

13

%
New Life-Licensed Representatives

10,919

13,544

(19)

%
Life Insurance Policies Issued

78,664

83,754

(6)

%
Life Productivity (2)

0.20

0.22

*

ISP Product Sales ($ billions)

$

1.94

$

1.76

10

%
Average Client Asset Values ($ billions)

$

64.43

$

61.30

5

%
(1) End of period
(2) Life productivity equals policies issued divided by the average number of life insurance licensed representatives per month
* Not calculated or less than 1%
 

Segment Results

Q2 2019 Q2 2018 % Change
($ in thousands)
Adjusted Operating Revenues: (1)
Term Life Insurance

$

296,868

$

272,978

9

%
Investment and Savings Products

$

173,086

$

162,041

*

Corporate and Other Distributed Products

$

31,434

$

31,058

1

%
Total adjusted operating revenues (1)

$

501,388

$

466,877

7

%
Adjusted Operating Income (loss) before income taxes:(1)
Term Life Insurance

$

83,997

$

75,828

11

%
Investment and Savings Products

47,343

43,227

10

%
Corporate and Other Distributed Products

(7,394)

(6,228)

19

%
Total adjusted operating income before income taxes (1)

$

123,946

$

112,827

10

%
(1) See the Non-GAAP Financial Measures section and the segment Operating Results Reconciliations at the end of this release for additional information. * Less than 1%
 

Life Insurance Licensed Sales Force and Distribution Trends

During the second current quarter, 86,173 individuals were recruited to Primerica, a year-over-year increase of 13%. Much of this increase came during the second half of June, driven by excitement generated at the biennial convention and incentives announced to drive recruiting and productivity. Lower recruiting levels earlier in the year, and the resulting impact on new life-licensed representatives in the period, led to a life insurance licensed sales force at quarter-end of 129,550, largely unchanged from the prior year.

The ISP segment posted solid quarterly results with net new client inflows of $227 million, led by a 31% increase in sales of variable annuities year-overyear and strong demand for managed accounts, which ended the quarter up 19% to $3.3 billion in client account asset values.

Term Life Insurance

Operating revenues of $296.9 million during the second quarter increased 9% compared to the second quarter of 2018 driven by 11% growth in adjusted direct premiums. Persistency during the quarter was consistent with the prior year and benefits and claims experience was in line with historical trends. Income before income taxes was $84.0 million, an increase of 11% year-over-year.

During the second quarter of 2019, new life insurance policies issued were 78,664, down 6% compared to the prior year period. Productivity for the quarter was 0.20 policies per life insurance licensed representative per month, which was within the Company’s historical range of 0.18 to 0.22, but below the prior year level of 0.22.

Investment and Savings Products

Operating revenues of $173.1 million during the second quarter increased 6% compared to the second quarter of 2018. The increase in revenues is due in part to a 10% increase in sales volume, reflecting strong demand for variable annuities and an increase in demand for mutual funds. Higher average client asset values also contributed to the increase in revenues as average assets increased 5% compared to the second quarter of 2019. Sales and asset-based commission expenses were generally consistent with the associated revenues. These strong drivers, combined with the Company’s efforts to reduce costs and realize operational efficiencies, led to a 10% increase in income before income taxes.

As of June 30, 2019, ending client asset values were $66 billion and sales for the quarter were $1.9 billion, both new highwater marks for the Company. Net new client inflows were $305 million for the quarter.

Net Investment Income

Net investment income during the quarter benefited by approximately $2.0 million from an increase in the size of the invested assets portfolio compared to the same quarter in 2018, as well as higher book earnings on the deposit asset underlying the 10% coinsurance agreement from extending the portfolio duration. These were partly offset by lower reinvestment yields on purchases made in the general portfolio.

Taxes

In the second quarter of 2019, the GAAP effective income tax rate was 23.5% compared to 23.8% during the second quarter of 2018.

Capital

During the second quarter of 2019, the Company repurchased 463,916 shares of common stock with a value of $57.1 million, bringing the year-to-date total to $110.7 million. The Board of Directors has approved a dividend of $0.34 per share, payable on September 13, 2019, to stockholders of record on August 21, 2019.

Primerica has a strong balance sheet and continues to be well-capitalized to meet future needs. Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be approximately 440% as of June 30, 2019.

Non-GAAP Financial Measures

We report financial results in accordance with U.S. generally accepted accounting principles (GAAP). We also present adjusted direct premiums, other ceded premiums, adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, adjusted stockholders’ equity and diluted adjusted operating earnings per share. Adjusted direct premiums and other ceded premiums are net of amounts ceded under coinsurance transactions that were executed concurrent with our initial public offering (IPO coinsurance transactions) for all periods presented. 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. Adjusted operating revenues, adjusted operating income before income taxes, adjusted net operating income, and diluted adjusted operating earnings per share exclude the impact of realized investment gains (losses) and fair value mark-to-market (MTM) investment adjustments, including other-than-temporary impairments (OTTI), for all periods presented. We exclude realized investment gains (losses) and MTM investment adjustments in measuring these non-GAAP financial measures to eliminate period-over-period fluctuations that may obscure comparisons of operating results due to items such as the timing of recognizing gains (losses) and market pricing variations prior to an invested asset’s maturity or sale that are not directly associated with the Company’s insurance operations. Adjusted stockholders’ equity excludes the impact of net unrealized investment gains (losses) recorded in accumulated other comprehensive income (loss) for all periods presented. We exclude unrealized investment gains (losses) in measuring adjusted stockholders’ equity as unrealized gains (losses) from the Company’s available-for-sale securities 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 available-for-sale security matures or is sold.

The definitions of these non-GAAP financial measures may differ from the definitions of similar measures used by other companies. Management uses these non-GAAP financial measures in making financial, operating and planning decisions and in evaluating the Company’s performance. Furthermore, management believes that these non-GAAP financial measures may provide users with additional meaningful comparisons between current results and results of prior periods as they are expected to be reflective of the core ongoing business. These measures have limitations, and investors should not consider them in isolation or as a substitute for analysis of the Company’s results as reported under GAAP. Reconciliations of GAAP to non-GAAP financial measures are attached to this release.

Earnings Webcast Information

Primerica will hold a webcast on Thursday, August 8, 2019 at 10:00 am EST, to discuss the quarter’s results. To access the webcast go to http://investors.primerica.com at least 15 minutes prior to the event to register, download and install any necessary software. A replay of the call will be available for approximately 30 days on Primerica’s website, http://investors.primerica.com. This release and a detailed financial supplement will be posted on Primerica’s website.

Forward-Looking Statements

Except for historical information contained in this press release, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contain known and unknown risks and uncertainties that may cause our actual results in future periods to differ materially from anticipated or projected results. Those risks and uncertainties include, among others, our failure to continue to attract and license new recruits, retain sales representatives or license or maintain the licensing of sales representatives; new laws or regulations that affect our distribution model; changes to the independent contractor status of sales representatives; our or sales representatives’ violation of or non-compliance with laws and regulations or the failure to protect the confidentiality of client information; differences between our actual experience and our expectations regarding mortality, persistency, expenses and interests rates as reflected in the pricing for our insurance policies; the occurrence of a catastrophic event; changes in federal, state and provincial legislation or regulation that affects our insurance and investment product businesses; our failure to meet regulatory capital ratios or other minimum capital and surplus requirements; a downgrade or potential downgrade in our insurance subsidiaries’ financial strength ratings or our senior debt ratings; inadequate or unaffordable reinsurance or the failure of our reinsurers to perform their obligations; the failure of our investment products to remain competitive with other investment options or the change to investment and savings products offered by key providers in a way that is not beneficial to our business; fluctuations in the performance of client assets under management; legal and regulatory investigations and actions concerning us or sales representatives; heightened standards of conduct or more stringent licensing requirements for sales representatives; inadequate policies and procedures regarding suitability review of client transactions; the failure of, or legal challenges to, the support tools we provide to sales force; the failure of our information technology systems, breach of our information security or failure of our business continuity plan; the effects of credit deterioration and interest rate fluctuations on our invested asset portfolio; incorrectly valuing our investments; the inability of our subsidiaries to pay dividends or make distributions; our inability to generate and maintain a sufficient amount of working capital; our non-compliance with the covenants of our senior unsecured debt; the loss of key personnel; and fluctuations in the market price of our common stock or Canadian currency exchange rates. These and other risks and uncertainties affecting us are more fully described in our filings with the Securities and Exchange Commission, which are available in the “Investor Relations” section of our website at http://investors.primerica.com/. Primerica assumes no duty to update its forward-looking statements as of any future date.

About Primerica, Inc.

Primerica, Inc., headquartered in Duluth, GA, provides financial services to middle-income households in North America. Primerica licensed representatives educate their clients about how to better prepare for a more secure financial future by assessing their needs and providing appropriate solutions through term life insurance, mutual funds, annuities and other financial products. Primerica insured approximately 5 million lives and had over 2 million client investment accounts at December 31, 2018. Primerica, through its insurance company subsidiaries, was the #2 issuer of Term Life insurance coverage in North America in 2018. Primerica stock is included in the S&P MidCap 400 and the Russell 1000 stock indices and is traded on The New York Stock Exchange under the symbol “PRI”.

 
PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
June 30, 2019 December 31, 2018
Assets
Investments:
Fixed-maturity securities available-for-sale, at fair value

$

2,216,260

$

2,069,635

Fixed-maturity security held-to-maturity, atamortized cost

1,087,790

970,390

Short-term investments available-for-sale, at fair value

8,171

Equity securities, at fair value

38,897

37,679

Trading securities, at fair value

23,375

13,610

Policy loans

33,527

31,501

Total investments

3,399,849

3,130,986

Cash and cash equivalents

244,975

262,138

Accrued investment income

17,434

17,057

Reinsurance recoverables

4,185,850

4,141,569

Deferred policy acquisition costs, net

2,238,315

2,133,920

Agent balances, due premiums and other receivables

238,367

215,139

Intangible assets, net

46,409

48,111

Income taxes

65,777

59,336

Operating lease right-of-use assets

49,381

-

Other assets1

394,058

391,291

Separate account assets

2,437,291

2,195,501

Total assets

$

13,317,706

$

12,595,048

Liabilities and Stockholders’ Equity
Liabilities:
Future policy benefits

$

6,314,403

$

6,168,157

Unearned and advance premiums

17,111

15,587

Policy claims and other benefits payable

322,417

313,862

Other policyholders’ funds

377,737

370,644

Notes payable

373,848

373,661

Surplus note

1,087,117

969,685

Income taxes

206,301

187,104

Operating lease liabilities

55,662

-

Other liabilities

496,027

486,772

Payable under securities lending

43,867

52,562

Separate account liabilities

2,437,291

2,195,501

Total liabilities

11,731,781

11,133,535

Stockholders’ equity:
Common stock

420

427

Paid-in capital

-

-

Retained earnings

1,537,535

1,489,520

Accumulated other comprehensive income (loss), net of income tax

47,970

(28,434)

Total stockholders’ equity

1,585,925

1,461,513

Total liabilities and stockholders’ equity

$

13,317,706

$

12,595,048

(1) Certain reclassifications have been made to the December 31, 2018 amounts to conform to current-period reporting classifications. These reclassifications had no impact on net income or total stockholders’ equity.
PRIMERICA, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
Three months ended June 30,
2019 2018
(In thousands, except per-share amounts)
Revenues:
Direct premiums

$

687,262

$

667,191

Ceded premiums

(400,588)

(403,449)

Net premiums

286,674

263,742

Commissions and fees

178,468

167,940

Net investment income

24,868

20,030

Realized investment gains (losses), including OTTI

1,067

1,313

Other, net

13,825

14,790

Total revenues

504,902

467,815

Benefits and expenses:
Benefits and claims

115,068

105,069

Amortization of deferred policy acquisition costs

58,762

53,847

Sales commissions

90,099

82,954

Insurance expenses

44,570

43,451

Insurance commissions

5,829

6,417

Interest expense

7,201

7,229

Other operating expenses

55,913

55,083

Total benefits and expenses

377,442

354,050

Income before income taxes

127,460

113,765

Income taxes

30,014

27,065

Net income

$

97,446

$

86,700

Earnings per share:
Basic earnings per share

$

2.28

$

1.96

Diluted earnings per share

$

2.28

$

1.95

Weighted-average shares used in computing earnings per share:
Basic

42,483

44,066

Diluted

42,619

44,207

 
PRIMERICA, INC. AND SUBSIDIARIES
Consolidated Adjusted Operating Results Reconciliation (Unaudited – in thousands, except per share amounts)
Three months ended June 30,
2019 2018 % Change
(In thousands, except per-share amounts)
Total Revenues

$

504,902

$

467,815

8

Less: Realized investment gains (losses), including OTTI

1,067

1,313

Less: 10% deposit asset MTM included in net investment income (NII)(1)

2,447

(375)

Adjusted operating revenues

501,388

$

466,877

7

Income before income taxes

$

127,460

$

113,765

12

Less: Realized investment gains (losses), including OTTI

$

1,067

$

1,313

Less: 10% deposit asset MTM included in NII

2,447

(375)

Adjusted operating income before income taxes

123,946

112,827

10 %
Net income $

97,446

$

(375)

12 %
Less: Realized investment gains (losses), including OTTI

1,067

$

1,313

Less: 10% deposit asset MTM included in NII

2,447

$

(375)

Less: Tax impact of preceding items

(828)

(223)

Adjusted operating income

94,759

85,985

10%

Diluted earnings per share(1) $

2.28

$

1.95

17%

Less: Net after-tax impact of operating adjustments

0.07

0.02

Diluted adjusted operating earnings per share (1) $

2.21

$

1.93

14%

____________________ (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 June 30,
2019 2018
Direct premiums $ 681,004 $ 660,505
Less: Premiums ceded to IPO coinsurers 272,596 290,956
Adjusted direct premiums $ 408,408 $ 369,549
Ceded premiums $ (398,927) $ (401,686)
Less: Premiums ceded to IPO coinsurers (272,596) (290,956)
Other ceded premiums $ (126,331 ) $ (110,730)
Net premiums $ 282,077 $ 258,819
CORPORATE AND OTHER DISTRIBUTED PRODUCTS SEGMENT
Adjusted Operating Results Reconciliation
(Unaudited – in thousands)
Three months ended June 30,
2019 2018
Total revenues $ 34,948 $ 31,996
Less: Realized investment gains (losses), including OTTI 1,067 1,313
Less: 10% deposit asset MTM included in NII 2,447 (375)
Adjusted operating revenues $ 31,434 $ 31,058
Loss before income taxes $ (3,880 ) $ (5,290)
Less: Realized investment gains (losses), including OTTI 1,067 1,313
Less: 10% deposit asset MTM included in NII 2,447 (375)
Adjusted operating loss before income taxes $ (7,394) $ (6,228)
PRIMERICA, INC. AND SUBSIDIARIES
Adjusted Stockholders' Equity Reconciliation
(Unaudited – in thousands)
June 30, 2019 December 31, 2018
Stockholders' equity $ 1,585,925 $ 1,461,513
Less: Unrealized net investment gains (losses) recorded in stockholders' equity, net of income tax 56,227 (7,370)
Adjusted stockholders' equity $ 1,529,698 $ 1,468,883

Contacts

Investor Contact:
Nicole Russell
470-564-6663
Email: investorrelations@primerica.com

Media Contact: 
Keith Hancock
470-564-6328
Email: Keith.Hancock@Primerica.com

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