Primerica profits climb in second quarter

By J. Scott Trubey
The Atlanta Journal-Constitution, August 2, 2011

Primerica, the insurance and financial services firm specializing in middle-income families, saw its net income double and operating revenue climb 17 percent in second quarter.

Duluth-based Primerica reported net income of $44 million, or 58 cents per diluted share, compared to $22 million or 29 cents per share in second quarter last year. Analysts polled by Bloomberg expected profit of 57 cents per share.

Primerica spun out of Citigroup in first quarter 2010, and second quarter 2010 provides the first true year-over-year comparison of continuing quarterly operations.

Operating revenue grew to $273.1 million. Term life revenue climbed 21 percent, while investment and savings products grew 14 percent thanks in part to higher sales and increases in clients' asset values.

Earnings also were aided by a lower income tax rate, though expenses did increase 4.5 percent.

In June, Primerica held its first sales force convention in Atlanta in four years. Primerica said the event, suspended while the company was still part of Citigroup, helped the firm rally from a deficit to finish the quarter flat in sales agent recruiting.