Associated Press, November 1, 2011
Primerica Inc., a provider of life insurance and other financial products, said Tuesday that its profit rose 3 percent in the third quarter as revenue increased.
The company, which was spun off by Citigroup and made its trading debut last year, reported net income of $40.6 million, or 53 cents a share, for the three months ended Sept. 30. That compares with net income of $39.6 million, or 52 cents a share, in the same period last year.
Adjusted results amounted to earnings of 56 cents a share, the company said.
That fell short of analysts' consensus forecast for earnings of 57 cents a share, according to FactSet. Analysts typically exclude one-time items in their estimates.
Total revenue jumped 14 percent to $275.8 million from $241.2 million a year earlier. Analysts were anticipating $273.3 million in revenue.
Primerica credited the improved results on growth in sales of new term premium, investment and savings products.
Operating revenue at the company's term life insurance segment grew by 22 percent versus the prior-year period to $141.7 million.
Primerica's investment and savings products business saw operating revenue rise 16 percent to $97.5 million, while the company's corporate and other distributed products posted a 9 percent annual drop to $36.8 million.
Also on Tuesday, Primerica said it has agreed to buy back 8.9 million shares of its stock from Citigroup Inc. at $22.42 a share, or about $200 million in all.
The transaction is expected to be completed on Nov. 15.
Following the deal, Citigroup will own about 12.5 percent of Primerica's outstanding common stock.
Primerica shares slipped 89 cents, or 3.9 percent, to $21.74 in regular trading. They were unchanged in extended trading following the release of the quarterly results.