By Aman Shah, Edited by Sriraj Kalluvila
Reuters, August 7, 2012
Life insurer Primerica Inc's (PRI) quarterly profit rose 23 percent and came in above Street estimates on strong sales at its term-life insurance segment.
Net income for the company, which was spun off from Citigroup Inc (C), rose to $46.2 million, or 73 cents per share, for the second quarter, from $37.6 million, or 49 cents per share, a year earlier.
Operating income, a key measure of profitability for insurance companies as it excludes investment gains and losses, was 71 cents per share.
Analysts on average expected Primerica to earn 65 cents per share, according to Thomson Reuters I/B/E/S.
The company, which has been buying back shares from large stakeholders to have greater control over its operations, also authorized a share buyback program of up to $75 million.
Term-life insurance sales rose 24 percent to $162.7 million, while operating income at the segment was up 44 percent to $51.7 million.
Shares of the company closed at $27.17 on Tuesday on the New York Stock Exchange.